Analyst forecast optimism and market reaction: Australian Evidence
This paper examines whether earnings forecasts within the Australian context suffer from analysts’ optimism and under- or overreaction to new information in forecast revisions, and also whether and how investors respond to analysts’ bias in a given forecast. Our findings indicate that Australian ana...
| Main Authors: | , |
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| Format: | Journal Article |
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Financial Services Institute of Australasia (Finsia)
2014
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| Online Access: | http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-3/analyst-forecast-optimism-and-market-reaction-australian-evidence http://hdl.handle.net/20.500.11937/26551 |
| _version_ | 1848752018898812928 |
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| author | Sadique, Shibley Rahman, A. |
| author_facet | Sadique, Shibley Rahman, A. |
| author_sort | Sadique, Shibley |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper examines whether earnings forecasts within the Australian context suffer from analysts’ optimism and under- or overreaction to new information in forecast revisions, and also whether and how investors respond to analysts’ bias in a given forecast. Our findings indicate that Australian analysts are optimistic and underreact both to positive and negative forecast revisions. We also find that when making investment decisions, investors are unable to distinguish the predictable component of forecast bias from the unpredictable component, although they are aware of the overall optimism in analysts’ forecasts and adjust for that. |
| first_indexed | 2025-11-14T08:01:57Z |
| format | Journal Article |
| id | curtin-20.500.11937-26551 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:01:57Z |
| publishDate | 2014 |
| publisher | Financial Services Institute of Australasia (Finsia) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-265512017-01-30T12:54:06Z Analyst forecast optimism and market reaction: Australian Evidence Sadique, Shibley Rahman, A. This paper examines whether earnings forecasts within the Australian context suffer from analysts’ optimism and under- or overreaction to new information in forecast revisions, and also whether and how investors respond to analysts’ bias in a given forecast. Our findings indicate that Australian analysts are optimistic and underreact both to positive and negative forecast revisions. We also find that when making investment decisions, investors are unable to distinguish the predictable component of forecast bias from the unpredictable component, although they are aware of the overall optimism in analysts’ forecasts and adjust for that. 2014 Journal Article http://hdl.handle.net/20.500.11937/26551 http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-3/analyst-forecast-optimism-and-market-reaction-australian-evidence Financial Services Institute of Australasia (Finsia) restricted |
| spellingShingle | Sadique, Shibley Rahman, A. Analyst forecast optimism and market reaction: Australian Evidence |
| title | Analyst forecast optimism and market reaction: Australian Evidence |
| title_full | Analyst forecast optimism and market reaction: Australian Evidence |
| title_fullStr | Analyst forecast optimism and market reaction: Australian Evidence |
| title_full_unstemmed | Analyst forecast optimism and market reaction: Australian Evidence |
| title_short | Analyst forecast optimism and market reaction: Australian Evidence |
| title_sort | analyst forecast optimism and market reaction: australian evidence |
| url | http://www.finsia.com/docs/default-source/jassa-new/jassa-2014/jassa-2014-issue-3/analyst-forecast-optimism-and-market-reaction-australian-evidence http://hdl.handle.net/20.500.11937/26551 |