Publication:
Analyst optimism and market sentiment: evidence from European corporate sustainability reporters

Date

2024

Director

Publisher

Elsevier
Acceso abierto / Sarbide irekia
Artículo / Artikulua
Versión publicada / Argitaratu den bertsioa

Project identifier

AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PID2019-104304GB-I00/ES/recolecta
AEI//TED2021-131216B-I00
Métricas Alternativas

Abstract

This study investigates the effect of investor sentiment on analysts’ optimism bias for a set of European companies with high-quality non-financial information reporting. The contents of the reports should make stock recommendations for such firms that are less prone to sentiment-driven optimism bias; our observations show this to be the case. For further insight, we analysed the informative value of stock recommendations in high- and low-sentiment periods, taking sustainability reporting quality into account. We find that buy recommendations for high-sustainability stocks have no informational value when sentiment is high, whereas informative recommendations in the form of sell recommendations for low-sustainability stocks appear when sentiment is high.

Description

Keywords

Financial analysts, Optimism bias, Investor sentiment, Sustainability

Department

Institute for Advanced Research in Business and Economics - INARBE

Faculty/School

Degree

Doctorate program

item.page.cita

Del Río, C., Ferrer, E., López-Arceiz, F. J. (2024) Analyst optimism and market sentiment: evidence from European corporate sustainability reporters. Research in International Business and Finance, 69, 1-21. https://doi.org/10.1016/j.ribaf.2024.102253.

item.page.rights

© 2024 The Author(s). This is an open access article under the CC BY-NC-ND license.

Los documentos de Academica-e están protegidos por derechos de autor con todos los derechos reservados, a no ser que se indique lo contrario.