An Explanation for Unintentional Optimism in Analysts' Earnings Forecasts

By Lisa M. Sedor. 2002

154 citations recorded by the source corpus.

Subfields: Accounting, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/1034537fa3d4e6c18ed3cba38f894f75349ebaec

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Citations in the corpus

Air pollution, affect, and forecasting bias: Evidence from Chinese financial analysts (2019, result): “The sample mean and standard deviation of forecast optimism are 2.05 and 3.49, respectively, consistent with the prior literature which finds that sell-side analysts’ earnings forecasts are generally higher than the realized values (e.g., Francis and Philbrick, 1993; Lim, 2001; Sedor, 2002).”
Disclosure Readability and the Sensitivity of Investors' Valuation Judgments to Outside Information (2017, unknown): “work suggests that firms can encourage optimism by using causal narratives to describe why performance will improve in the future (Sedor 2002; Kadous, Krische, and Sedor 2006).”
The Financial Analyst Forecasting Literature: A Taxonomy with Suggestions for Further Research (2008, unknown): “Sedor (2002) Experimental survey with 86 sell-side analysts.”
How does readability influence investors' judgments? Consistency of benchmark performance matters (2015, methodology): “6 In contrast to the manipulation of narrative versus list presentation in Sedor (2002), where causal order/links and certain key information vary across conditions, our manipulation of readability holds those factors constant between the low and high readability conditions and varies the ease with…”
Are Individuals Entering Self-Employment Overly-Optimistic? An Empirical Test of Plans and Projections on Nascent Entrepreneur Expectations (2009, unknown): “I adopt the term over-optimism from the forecasting literature, which describes the properties of the forecast investigated that is argued to be an outcome of the decision making process (Cassar & Gibson, 2007; Sedor, 2002).”
Does concrete language in disclosures increase willingness to invest? (2014, unknown): “2007) or when information is easier to visualize (Sedor 2002; Kadous et al. 2006).”
Louis Working Paper Series Beyond the Numbers : An Analysis of Optimistic and Pessimistic Language in Earnings Press Releases (2006, background): “For example, experimental evidence shows that analysts’ annual earnings forecasts are influenced by the structure of managers’ narrative disclosures, holding the information content of those disclosures constant (Sedor 2002).”
Fifty-Year Overview of Judgment and Decision-Making Research in Accounting (2011, unknown): “Sedor (2002) found that forecast optimism was an unintentional consequence of analysts’ reactions to the structure of information about managers’ future plans.”