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COVID-19 pandemic, limited attention, and analyst forecast dispersion

This paper investigates the effect of the COVID-19 pandemic on analysts’ forecast dispersion. We find that analysts’ exposure to the COVID-19 lockdown reduces the dispersion of their forecasts. Along with the forecast dispersion, the number of earnings forecasts issued by treated analysts decreases,...

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Detalles Bibliográficos
Autores principales: Zhang, Jinjin, Wu, Jinyu, Luo, Yalin, Huang, Ziyan, He, Ruzhen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9465493/
https://www.ncbi.nlm.nih.gov/pubmed/36119390
http://dx.doi.org/10.1016/j.frl.2022.103322
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author Zhang, Jinjin
Wu, Jinyu
Luo, Yalin
Huang, Ziyan
He, Ruzhen
author_facet Zhang, Jinjin
Wu, Jinyu
Luo, Yalin
Huang, Ziyan
He, Ruzhen
author_sort Zhang, Jinjin
collection PubMed
description This paper investigates the effect of the COVID-19 pandemic on analysts’ forecast dispersion. We find that analysts’ exposure to the COVID-19 lockdown reduces the dispersion of their forecasts. Along with the forecast dispersion, the number of earnings forecasts issued by treated analysts decreases, supporting the channel of attention distraction. Moreover, there is no significant difference between optimistic and pessimistic forecasts, against the explanation of risk attitude change. We find our conclusion is robust to a staggered DID model and numerous robustness tests. Our finding contributes to the dispute regarding the pandemic's effect on analyst forecast behavior.
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spelling pubmed-94654932022-09-12 COVID-19 pandemic, limited attention, and analyst forecast dispersion Zhang, Jinjin Wu, Jinyu Luo, Yalin Huang, Ziyan He, Ruzhen Financ Res Lett Article This paper investigates the effect of the COVID-19 pandemic on analysts’ forecast dispersion. We find that analysts’ exposure to the COVID-19 lockdown reduces the dispersion of their forecasts. Along with the forecast dispersion, the number of earnings forecasts issued by treated analysts decreases, supporting the channel of attention distraction. Moreover, there is no significant difference between optimistic and pessimistic forecasts, against the explanation of risk attitude change. We find our conclusion is robust to a staggered DID model and numerous robustness tests. Our finding contributes to the dispute regarding the pandemic's effect on analyst forecast behavior. Elsevier Inc. 2022-12 2022-09-12 /pmc/articles/PMC9465493/ /pubmed/36119390 http://dx.doi.org/10.1016/j.frl.2022.103322 Text en © 2022 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Zhang, Jinjin
Wu, Jinyu
Luo, Yalin
Huang, Ziyan
He, Ruzhen
COVID-19 pandemic, limited attention, and analyst forecast dispersion
title COVID-19 pandemic, limited attention, and analyst forecast dispersion
title_full COVID-19 pandemic, limited attention, and analyst forecast dispersion
title_fullStr COVID-19 pandemic, limited attention, and analyst forecast dispersion
title_full_unstemmed COVID-19 pandemic, limited attention, and analyst forecast dispersion
title_short COVID-19 pandemic, limited attention, and analyst forecast dispersion
title_sort covid-19 pandemic, limited attention, and analyst forecast dispersion
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9465493/
https://www.ncbi.nlm.nih.gov/pubmed/36119390
http://dx.doi.org/10.1016/j.frl.2022.103322
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