EN
Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts
Abstract
This paper aims to investigate the effect of financial analysts’ recommendations on the overconfidence and over or under-reaction to previous years’ earnings, as well as their impact on investment decisions in the Tunisian stock market. Literature mostly turned out that a positive bias in analysts’ forecasts overreacted to prior earnings changes. Our study is based on the assumption that overconfidence among analysts can be understood through the accuracy of their forecasts, but also it is detected by the way that analyst provides a clear recommendation or not. The analysis employs a panel regression models using annual and bi-annual data over the period 2010-2015. Empirical results show that analysts on the Tunisian stock market are too confident in their forecasts on average, and there is clearly an overall over-reaction to past earnings changes. However, self-confidence is greater for those forecasts that are equipped with a recommendation, when the over-reaction is greater for the not equipped forecasts.
Keywords
Details
Primary Language
English
Subjects
Economics
Journal Section
Conference Paper
Publication Date
June 1, 2017
Submission Date
June 1, 2017
Acceptance Date
-
Published in Issue
Year 2017 Volume: 7 Number: 2
APA
Bouteska, A., & Regaieg, B. (2017). Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts. International Journal of Economics and Financial Issues, 7(2), 208-214. https://izlik.org/JA53TA83ET
AMA
1.Bouteska A, Regaieg B. Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts. IJEFI. 2017;7(2):208-214. https://izlik.org/JA53TA83ET
Chicago
Bouteska, Ahmed, and Boutheina Regaieg. 2017. “Overconfidence Bias, over Under-Reaction of Financial Analysts on the Tunisian Stock Market, and Their Impact on the Earnings Forecasts”. International Journal of Economics and Financial Issues 7 (2): 208-14. https://izlik.org/JA53TA83ET.
EndNote
Bouteska A, Regaieg B (June 1, 2017) Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts. International Journal of Economics and Financial Issues 7 2 208–214.
IEEE
[1]A. Bouteska and B. Regaieg, “Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts”, IJEFI, vol. 7, no. 2, pp. 208–214, June 2017, [Online]. Available: https://izlik.org/JA53TA83ET
ISNAD
Bouteska, Ahmed - Regaieg, Boutheina. “Overconfidence Bias, over Under-Reaction of Financial Analysts on the Tunisian Stock Market, and Their Impact on the Earnings Forecasts”. International Journal of Economics and Financial Issues 7/2 (June 1, 2017): 208-214. https://izlik.org/JA53TA83ET.
JAMA
1.Bouteska A, Regaieg B. Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts. IJEFI. 2017;7:208–214.
MLA
Bouteska, Ahmed, and Boutheina Regaieg. “Overconfidence Bias, over Under-Reaction of Financial Analysts on the Tunisian Stock Market, and Their Impact on the Earnings Forecasts”. International Journal of Economics and Financial Issues, vol. 7, no. 2, June 2017, pp. 208-14, https://izlik.org/JA53TA83ET.
Vancouver
1.Ahmed Bouteska, Boutheina Regaieg. Overconfidence bias, over/under-reaction of financial analysts on the Tunisian stock market, and their impact on the earnings forecasts. IJEFI [Internet]. 2017 Jun. 1;7(2):208-14. Available from: https://izlik.org/JA53TA83ET