Security analysts' career concerns and herding of earnings forecasts

RAND Journal of Economics

Volumn 31, Issue 1, 2000, Pages 121-144

  Hong, Harrison ^a   Kubik, Jeffrey D ^a   Solomon, Amit ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0034372684     PISSN: 07416261     EISSN: None     Source Type: Journal    
DOI: 10.2307/2601032     Document Type: Article

References (34)

1. AVERY, C.N. AND CHEVALIER, J.A. "Herding over the Career." Economics Letters, Vol. 63 (1999), pp. 327-333.
2. BANERJEE, A. "A Simple Model of Herd Behavior." Quarterly Journal of Economics, Vol. 107 (1992), pp. 797-817.
3. BIKHCHANDANI, S., HIRSHLEIFER, D., AND WELCH, I. "A Theory of Fads, Fashions, Custom and Cultural Change as Informational Cascades." Journal of Political Economy, Vol. 100 (1992), pp. 992-1026.
4. CHEVALIER, J.A. AND ELLISON, G.D. "Career Concerns of Mutual Fund Managers." Quarterly Journal of Economics, Vol. 114 (1999), pp. 389-432.
5. COOPER, R.A., DAY, T.E., AND LEWIS, C.M. "Following the Leader: A Study of Individual Analysts Earnings Forecasts." Mimeo, Vanderbilt University, 1999.
6. CRICHFIELD, T., DYCKMAN, T.R., AND LAKONISHOK, J. "An Evaluation of Security Analysts' Forecasts." Accounting Review, Vol. 53 (1978), pp. 651-668.
7. EHRBECK, T. AND WALDMANN, R. "Why Are Professional Forecasters Biased? Agency Versus Behavioral Explanations." Quarterly Journal of Economics, Vol. 111 (1996), pp. 21-40.
8. FALKENSTEIN, E. "Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings." Journal of Finance, Vol. 51 (1996), pp. 111-135.
9. FAMA, E.F. "Agency Problems and the Theory of the Firm." Journal of Political Economy, Vol. 88 (1980), pp. 288-307.
10. GIBBONS, R. AND MURPHY, K.J. "Optimal Incentive Contracts in the Presence of Career Concerns: Theory and Evidence." Journal of Political Economy, Vol. 100 (1992), pp. 468-505.
11. GRAHAM, J.R. "Herding Among Investment Newsletters: Theory and Evidence." Journal of Finance, Vol. 54 (1999), pp. 237-268.
12. GRENADIER, S.R. "Information Revelation Through Option Exercise." Review of Financial Studies, Vol. 12 (1999), pp. 95-129.
13. GRINBLATT, M., TITMAN, S., AND WERMERS, R. "Momentum Investment Strategies, Portfolio Performance, and Herding: A Study of Mutual Fund Behavior." American Economic Review, Vol. 85 (1995), pp. 1088-1105.
14. HOLMSTRÖM, B. "Managerial Incentive Problems: A Dynamic Perspective." Review of Economic Studies, Vol. 66 (1999), pp 169-182.
15. KUTSOATI, E. AND BERNHARDT, D. "Can Relative Performance Compensation Explain Analysts' Forecasts of Earnings?" Mimeo, Tufts University, 1999.
16. LAMONT, O. "Macroeconomic Forecasts and Microeconomic Forecasters." NBER Working Paper 5284, 1995.
17. LAZEAR, E. AND ROSEN, S. "Rank-Order Tournaments as Optimum Labor Contracts." Journal of Political Economy, Vol. 89 (1981), pp. 841-864.
18. LAKONISHOK, J., SHLEIFER, A., AND VISHNY, R. "The Impact of Institutional Trading on Stock Prices." Journal of Financial Economics, Vol. 32 (1992), pp. 23-43.
19. MICHAELY, R. AND WOMACK, K. "Conflict of Interest and the Credibility of Underwriter Analyst Recommendations." Review of Financial Studies, Vol. 12 (1999), pp. 653-686.
20. MIKHAIL, M.B., WALTHER, B.R., AND WILLIS, R.H. "Does Forecast Accuracy Matter to Analysts?" Accounting Review, Vol. 74 (1999), pp. 185-200.
21. NOCERA, J. "Who Really Moves the Market?" Fortune, October 27, 1997, pp. 90-110.
22. NOFSINGER, J. AND SIAS, R. "Herding by Institutional and Individual Investors." Mimeo, Marquette University, 1996.
23. PELES, N. "The Determinants of Institutional Demand for Equity: An Empirical Study." Mimeo, Columbia University, 1993.
24. PRENDERGAST, C. AND STOLE, L. "Impetuous Youngsters and Jaded Old-Timers: Acquiring a Reputation for Learning." Journal of Political Economy, Vol. 104 (1996), pp. 1105-1134.
25. SCHARFSTEIN, D.S. AND STEIN, J.C. "Herd Behavior and Investment." American Economic Review, Vol. 80 (1990), pp. 465-479.
26. SCHIPPER, K. "Commentary on Analysts' Forecasts." Accounting Horizons, Vol. 5 (1991), pp. 105-122.
27. STICKEL, S.E. "Reputation and Performance Among Security Analysts." Journal of Finance, Vol. 47 (1992), pp. 1811-1836.
28. _. "The Anatomy of the Performance of Buy and Sell Recommendations." Financial Analysts Journal, Vol. 51 (1995), pp. 25-39.
29. TRUEMAN, B. "Analyst Forecasts and Herding Behavior." Review of Financial Studies, Vol. 7 (1994), pp. 97-124.
30. WELCH, I. "Herding Among Security Analysts." Journal of Financial Economics (forthcoming).
31. WERMERS, R. "Herding, Trade Reversals and Cascading by Institutional Investors." Mimeo, University of Colorado, Boulder, 1995.
32. WOMACK, K. "Do Brokerage Analysts' Recommendations Have Investment Value?" Journal of Finance, Vol. 51 (1996), pp. 137-167.
33. WYLIE, S. "Tests of the Accuracy of Measures of Herding Using UK Data." Mimeo, London Business School, 1996.
34. ZWIEBEL, J. "Corporate Conservatism and Relative Compensation." Journal of Political Economy, Vol. 103 (1995), pp. 1-25.