IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v45y2018i9-10p1082-1099.html
   My bibliography  Save this article

Determinants of the relationship between investor sentiment and analysts’ private information production

Author

Listed:
  • Walied Keshk
  • Jeff J. Wang

Abstract

We examine whether and how investor sentiment affects analysts’ private information production and the factors that moderate this influence. As expected, analysts’ private information production (measured by the information asymmetry component of analyst forecast dispersion) is significantly negatively associated with investor sentiment. Our tests also show that higher institutional holdings of stock, longer analysts’ earnings forecasting experience, and higher levels of short selling of stock mitigate this negative influence of sentiment on analysts’ private information production. Our findings are informative for researchers, financial analysts, and market participants who rely on analysts’ forecasts to form earnings expectations.

Suggested Citation

  • Walied Keshk & Jeff J. Wang, 2018. "Determinants of the relationship between investor sentiment and analysts’ private information production," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 45(9-10), pages 1082-1099, October.
    • Handle: RePEc:bla:jbfnac:v:45:y:2018:i:9-10:p:1082-1099
    DOI: 10.1111/jbfa.12340
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jbfa.12340
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jbfa.12340?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing, Wei & Zhang, Xueyong, 2021. "Online social networks and corporate investment similarity," Journal of Corporate Finance, Elsevier, vol. 68(C).
    2. Zhang, Xuetong & Zhang, Weiguo, 2023. "Information asymmetry, sentiment interactions, and asset price," The North American Journal of Economics and Finance, Elsevier, vol. 67(C).
    3. Keval Amin & Erica Harris, 2022. "The Effect of Investor Sentiment on Nonprofit Donations," Journal of Business Ethics, Springer, vol. 175(2), pages 427-450, January.
    4. Kim, Karam & Ryu, Doojin & Yang, Heejin, 2021. "Information uncertainty, investor sentiment, and analyst reports," International Review of Financial Analysis, Elsevier, vol. 77(C).
    5. Peter Clarkson & Alexander Nekrasov & Andreas Simon & Irene Tutticci, 2020. "Target price forecasts: The roles of the 52‐week high price and recent investor sentiment," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(9-10), pages 1365-1399, October.
    6. Santi, Caterina & Zwinkels, Remco C.J., 2023. "Exploring style herding by mutual funds," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:45:y:2018:i:9-10:p:1082-1099. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.