Herding among security analysts

By Ivo Welch. 2000

835 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/2575fabcce40139f7e71b5356f67bf37b4c0b817

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Citations in the corpus

Target Price Accuracy in Equity Research (2010, positive): “Interpretations of this result could be related with a “herding” behavior as documented by Welch (2000), who provide evidence of analysts publication dates clustering and estimates converging the larger the volume of research published.”
Cross-country effects in herding behaviour: Evidence from four south European markets (2011, neutral): “A well documented behaviour encountered in such extreme market conditions is herding, defined as the mutual imitation leading to a convergence of action (Shefrin, 2000; Welch, 2000; Hirshleifer and ∗ Corresponding author.”
Herding and Contrarian Behavior in Financial Markets: An Internet Experiment (2005, background): “Beginning with Lakonishok et al. (1992) researchers were analyzing the tendency of fund managers, security analysts (Welch, 2000), or investment newsletters (Graham, 1999) to herd (for surveys, see e.g., Bikhchandani and Sharma, 2000, Hirshleifer and Teoh, 2003, or Daniel et al., 2002).”
Conflicts of Interest in Sell-Side Research and the Moderating Role of Institutional Investors (2007, background): “When initiating coverage, analysts issue recommendations that are indistinguishable from the consensus, possibly because the uncertainty involved in initiating coverage leads to herding behavior (Trueman, 1994; Welch, 2000).”
Understanding analysts' use of stock returns and other analysts' revisions when forecasting earnings (2011, background): “As Welch (2000) explains, ‘‘[l]acking access to the underlying information flow, [one] cannot discern if the influence of recent revisions is either a similar response by multiple analysts to the same underlying information or is caused by direct mutual imitation’’ (p. 393).”
Analysts' Weighting of Private and Public Information (2006, neutral): “Lastly, optimistic weighting in earnings forecasts complements Welch's (2000) finding that analysts herd in stock recommendations, especially when the consensus recommendation is overly optimistic.”
A cross-country analysis of herd behavior in Europe (2014, neutral): “…aggregate market data analysis (e.g., Christie and Huang, 1995; Chang et al., 2000; Hwang and Salmon, 2004; and Wang, 2008) and, second, researchers using data analysis for portfolio investors (e.g., Lakonishok et al., 1992; Wermers, 1999; Trueman, 1994; Welch, 2000; and Walter and Weber, 2006).”
A New Approach to Predicting Analyst Forecast Errors: Do Investors Overweight Analyst Forecasts? (2013, result): “DISP is signi cantly higher for high CO rms for whom analysts are pessimistic relative to the characteristic forecasts, which is consistent with the ndings in Welch (2000) that analyst pessimism is positively (negatively) related to the tendency to issue bold (herding) earnings forecasts.”
The Predictive Content of Aggregate Analyst Recommendations (2009, background): “, Welch (2000)) finds that analysts herd in their stock recommendations, i.”