Target Price Forecast Rounding Practice by European Analysts
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School of Business |
Bachelor's thesis
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Date
2018
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Mcode
Degree programme
Rahoitus
Language
en
Pages
27+6
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Abstract
This thesis studies analysts’ tendency to round their target price forecasts within a European context. I find that analysts have a common practice of rounding their forecasts, even to more coarse levels than common integers. Moreover, I find statistically significant, but partly mixed results between the relation of rounding and analyst or firm characteristics. Finally, I cannot confirm the hypothesis that rounding bias would increase analysts’ positive forecast bias.Description
Thesis advisor
Ungeheuer, MichaelKeywords
analyst, target price, heaping, rounding, cognitive bias, behavioral bias, Europe, finance