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The behavioral basis of sell-side analysts’ herding

Author

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  • Durand, Robert B.
  • Limkriangkrai, Manapon
  • Fung, Lucia

Abstract

Sell-side analysts move away from the prevailing consensus as their confidence increases. As their confidence falls, they herd toward the prevailing consensus. Confidence as well as the associated propensity to move away from the herd increase as firms become more difficult to analyze. This behavior is consistent with such analysts having lower meta-cognitive skills.

Suggested Citation

  • Durand, Robert B. & Limkriangkrai, Manapon & Fung, Lucia, 2014. "The behavioral basis of sell-side analysts’ herding," Journal of Contemporary Accounting and Economics, Elsevier, vol. 10(3), pages 176-190.
    • Handle: RePEc:eee:jocaae:v:10:y:2014:i:3:p:176-190
    DOI: 10.1016/j.jcae.2014.08.001
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    3. Steven Shead & Robert B Durand & Stephanie Thomas, 2021. "Predicting price intervals under exogenously induced stress," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-15, September.

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