Analyst behaviour: the geography of social interaction
- An analyst who works in Germany is more likely to publish a high (low) price target regarding a DAX30 stock if other Germany based analysts are also optimistic (pessimistic) about the same stock. This finding is not biased by the fact that DAX30 companies are headquartered in Germany. In times of bull markets, price targets of analysts who regularly exchange their opinion are higher correlated compared to other analysts. This effect vanishes in a bearish market environment. This suggests that communication among analysts indeed plays an important role. However, analysts’ incentives induce them not to deviate too much from the overall average during an economic downturn.
| Author: | Frederik KönigGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-300742 |
| URL: | http://ssrn.com/abstract=1988831 |
| DOI: | https://doi.org/10.2139/ssrn.1988831 |
| Publisher: | Social Science Electronic Publ. |
| Place of publication: | [S.l.] |
| Document Type: | Report |
| Language: | English |
| Date of Publication (online): | 2012/01/19 |
| Date of first Publication: | 2012/01/19 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2013/06/06 |
| Tag: | Analyst Behaviour; Herding; Social Interaction; Word-of-Mouth |
| Issue: | SSRN-id1988831 |
| Page Number: | 29 |
| First Page: | 1 |
| Last Page: | 29 |
| HeBIS-PPN: | 347776787 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften |
| 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft | |
| JEL-Classification: | A General Economics and Teaching / A1 General Economics / A14 Sociology of Economics |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
