search query: @author Bhattacharjee, S. / total: 5
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| Author: | Hunton, J. E. McEwen, R. A. Bhattacharjee, S. |
| Title: | Toward an Understanding of the Risky Choice Behavior of Professional Financial Analysts |
| Journal: | Journal of Psychology and Financial Markets
2001 : VOL. 2:4, p. 182-189 |
| Index terms: | RISK BEHAVIOUR RISK RISK ANALYSIS FINANCE ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | The authors propose that an important psychological factor associated with optimistic earnings forecasts is the propensity of analysts to engage in risky choice behavior as described by prospect theory. Furthermore, the motivational incentives faced by analysts may exacerbate risky choice behavior during forecast revision, thereby magnifying overestimates of earnings. Sixty professional financial analysts were asked to issue a first quarter and then an annual EPS forecast of a company. The analysts were randomly assigned to two initial forecast accuracy conditions that indicated their initial forecast earnings was 1) essentially the same as actual earnings, or 2) substantially higher than actual earnings. |
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