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Article Dans Une Revue Review of Accounting Studies Année : 2024

When attention is away, analysts misplay: distraction and analyst forecast performance

Thomas Bourveau
Alexandre Garel
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Peter Joos
Arthur Petit-Romec
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Résumé

We construct a measure of analyst-level distraction based on analysts’ exposure to exogenous attention-grabbing events affecting firms under coverage. We find that temporarily distracted analysts achieve lower forecast accuracy, revise forecasts less frequently, and publish less informative forecast revisions relative to non-distracted analysts. Further, at the firm level, analyst distraction carries real negative externalities by increasing information asymmetry for stocks that suffer from a larger extent of analyst distraction during a given quarter. Our findings thus augment our understanding of the determinants and effects of analyst effort allocation and broaden the literature on distraction and information spillover in financial markets.
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Dates et versions

hal-03844012 , version 1 (29-02-2024)
hal-03844012 , version 2 (01-03-2024)

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Thomas Bourveau, Alexandre Garel, Peter Joos, Arthur Petit-Romec. When attention is away, analysts misplay: distraction and analyst forecast performance. Review of Accounting Studies, 2024, 29 (1), ⟨10.1007/s11142-022-09733-w⟩. ⟨hal-03844012v1⟩
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