Analysts close to disasters make better calls, study claims

Gloomy forecasts from those traumatised by nearby events give quirky demonstration of behavioural bias

terrorism-disaster.jpg

Past studies have shown surprising influences on sell-side analysts’ calls, from the weather to national pride to stubbornness. The latest in the line is as quirky as any, suggesting that physical proximity to traumatic events can make analysts more pessimistic – but also more accurate.

Carina Cuculiza and Alok Kumar at the University of Miami, and Constantinos Antoniou and Anastasios Maligkris at Warwick Business School, studied sell-side analysts’ earnings forecasts for US companies between

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: