Río Solano, María Cristina delFerrer Zubiate, ElenaLópez Arceiz, Francisco José2024-07-182024-07-182024Del 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.2024.102253.0275-531910.1016/j.ribaf.2024.102253https://academica-e.unavarra.es/handle/2454/50333This 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.application/pdfeng© 2024 The Author(s). This is an open access article under the CC BY-NC-ND license.Financial analystsOptimism biasInvestor sentimentSustainabilityinfo:eu-repo/semantics/article2024-07-18info:eu-repo/semantics/openAccess