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Analyst Optimism and Incentives under Market Uncertainty
dc.contributor.authorChang, Jin Woo
dc.contributor.authorChoi, Hae Mi
dc.date.accessioned2017-08-01T19:08:17Z
dc.date.available2018-09-04T15:09:22Zen
dc.date.issued2017-08
dc.identifier.citationChang, Jin Woo; Choi, Hae Mi (2017). "Analyst Optimism and Incentives under Market Uncertainty." Financial Review 52(3): 307-345.
dc.identifier.issn0732-8516
dc.identifier.issn1540-6288
dc.identifier.urihttps://hdl.handle.net/2027.42/137733
dc.description.abstractWe examine how analysts’ changing incentives driven by changes in market uncertainty affect their forecast optimism. Analysts issue more optimistically biased earnings forecasts and buy recommendations under high market uncertainty (VIX). The lower reputational costs and larger benefits of optimistic output explain the increased optimistic output: Analysts are less likely to be penalized for inaccuracy and can stimulate more trading activity from optimistically biased output when market uncertainty is high. We find that the likelihood of analysts’ turnover decreases, while the trading volume associated with optimistic output increases, with VIX. No evidence suggests that analysts’ self‐selection affects our findings on optimism and market uncertainty.
dc.publisherWiley Periodicals, Inc.
dc.subject.otherG29
dc.subject.otherG14
dc.subject.otherM40
dc.subject.othersell‐side analysts
dc.subject.otheroptimism
dc.subject.othermarket uncertainty
dc.subject.otherreputation
dc.subject.otherG24
dc.titleAnalyst Optimism and Incentives under Market Uncertainty
dc.typeArticleen_US
dc.rights.robotsIndexNoFollow
dc.subject.hlbsecondlevelFinance
dc.subject.hlbtoplevelBusiness and Economics
dc.description.peerreviewedPeer Reviewed
dc.description.bitstreamurlhttps://deepblue.lib.umich.edu/bitstream/2027.42/137733/1/fire12138.pdf
dc.description.bitstreamurlhttps://deepblue.lib.umich.edu/bitstream/2027.42/137733/2/fire12138_am.pdf
dc.identifier.doi10.1111/fire.12138
dc.identifier.sourceFinancial Review
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dc.owningcollnameInterdisciplinary and Peer-Reviewed


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