Security Analysts' Career Concerns and Herding of Earnings Forecasts

By Harrison G. Hong, Jeffrey D. Kubik, A. Solomon. 2000

1,186 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/823def449e391bcaaba7e21632f8c7ffb6fbdc4a

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Citations in the corpus

The Impact of Corporate Social Responsibility on Investment Recommendations: Analysts’ Perceptions and Shifting Institutional Logics (2015, background): “for all the brokerage houses that employ an investment analyst who follows the focal firm, thus proxying for the availability of resources that the analyst has at her disposal to perform her research (Clement, 1999) and b) Long Term Forecast Error measuring the average long-term forecast error of th”
Do Analysts Herd? An Analysis of Recommendations and Market Reactions (2010, positive): “…in the literature, this paper is the first to investigate whether the market recognizes herding behavior.3 3 For instance, Graham (1999), Jaffe and Mahoney (1999), Desai et al. (2000), Hong et al. (2000), Welch (2000) and Clement and Tse (2005) examine herding among stock analysts and newsletters.”
Large Sample Evidence on the Informativeness of Text in Analyst Reports (2012, background): “That is, analysts are especially important in propagating bad news, which is the theory posited, but not directly tested, by Hong et al. (2000). Our next contribution is that we are the first study to document that report text is informative about a firm’s short- and long-term performance, condition”
Political contributions and analyst behavior (2015, positive): “Such analyst traits include, for example, professional experience (Hong et al. 2000; Mikhail et al. 2003; Clement and Tse 2005), overconfidence (Hilary and Menzly 2006), gender (Kumar 2010), consistency (Hsu and Hilary 2013), and labor market experience (Clement and Law 2015).”
Herding among security analysts (2000, background): “Hong et al. (1998) show that older analysts are less likely to herd, both in choice of "rms followed and deviation from the earnings consensus.”
Analyst Forecast Consistency (2013, methodology): “…studies examine the effect of analyst reputation and forecast bias on the volume of trade generated by analyst forecasts (e.g., Bailey et al. (2003), Jackson (2005)), as well as the role of herding (e.g., Hong, Kubik, and Solomon (2000)) or optimism (Hong and Kubik (2003)) on labor market outcomes.”
Conflicts of Interest in Sell-Side Research and the Moderating Role of Institutional Investors (2007, background): “Second, more senior analysts issue significantly more aggressive recommendations when we include firm effects, consistent with prior results suggesting that analysts become bolder when their careers are better established (Hong et al., 2000).”
Analyzing the Analysts: Career Concerns and Biased Earnings Forecasts (2003, background): “The paper closest to ours is Hong, Kubik, and Solomon (2000), who test herding models along the lines of Scharfstein and Stein (1990), Trueman (1994), Zwiebel (1995), and Prendergast and Stole (1996).”
THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON INVESTMENT RECOMMENDATIONS. (2010, background): “for all the brokerage houses that employ an investment analyst who follows the focal firm, thus proxying for the availability of resources that the analyst has at her disposal to perform her research (Clement, 1999) and b) Long Term Forecast Error measuring the average long-term forecast error of th”
What Determine Financial Analysts' Career Outcomes During Mergers? (2009, methodology): “Hong et al. (2000) do not find a strong relation between turnover and experience but suggest that more experience dampens the effects of poor forecasting performance on turnover.”