Herding behavior among security analysts is described as similar behavior by analysts when forecasting main finance ratios of public companies and when giving investment recommendations. This type of behavior can be divided into two categories based on the different dri More
Herding behavior among security analysts is described as similar behavior by analysts when forecasting main finance ratios of public companies and when giving investment recommendations. This type of behavior can be divided into two categories based on the different driving forces behind the analysts’ herding behavior.. For instance, if one analyst lacks the ability to research and provide recommendations, he or she may follow, or even copy, a famous analyst’s reports. Such action will result in herding behaviorIn this paper, we build undirected weighted networks to study herding behavior among analysts and to analyze the characteristics and the structure of these networks. We then construct a new indicator based on the average degree of nodes and the average weighted clustering coefficient to research the various types of herding behavior. Our findings suggest that every industry has, to a certain degree, herding behavior among analysts. Furthermore, we relate the two types of herding behavior to stock price and find that uninformed herding behavior has a positive effect on market prices, whereas informed herding behavior has a negative effect.
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Corporate managers present financial reports in order to reveal their performance and financial status of corporation and then financial analysts use financial statements as a basis of making investment suggestions. Obviously investors don’t have any role in manag More
Corporate managers present financial reports in order to reveal their performance and financial status of corporation and then financial analysts use financial statements as a basis of making investment suggestions. Obviously investors don’t have any role in managing companies directly and therefore they have to make their decisions trusting financial statements.
In financial markets, financial analysts have to trust managers, even considering the fact that statements can be incorrect. Consequently, exploring influential factors in financial analysts’ trust to corporate managers seems necessary.
As financial behavioral is a kind of newborn field of finance, it’s essential that future researches should be directed towards it and implementation of it should be checked in developing markets like Iran’s. Financial behavioral is presented against classical economic theory which is based on some simplifying hypothesizes.
Main findings of this research are: 1. Qualification, honesty, competence, cultural factors and social factors are very influential in financial analysts’ trust to managers. 2. Integrity, benevolence and personal factors, have average influence in financial analysts’ trust to managers. 3. Being faithful to Islam has little influence in financial analysts’ trust to managers.
On the basis of findings, it can be said that an organization which has a qualified, honest, competent, well-behaved (cultured) and sociable manager, will be trustable; that it can lead to a good atmosphere and can provide a necessary condition of efficient market.
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One of the important factors for the success of venture capital markets is, the ability to make timely decisions and take away the feelings. Thus the aim of this study is to examine the third factor of successful capital market analysts or analyst’s personality ch More
One of the important factors for the success of venture capital markets is, the ability to make timely decisions and take away the feelings. Thus the aim of this study is to examine the third factor of successful capital market analysts or analyst’s personality characteristics. In other words, it is assumed in this study, analysts are specialist in fundamental and technical analysis and then influence their personality characteristics (the third dimension) is evaluated on their performance. Statistical population and the sample of this study consists of capital market analysts. Required data is collected by a combined questionnaire. The research hypotheses are tested using Pearson’s correlation tests. The results show that there is a significant correlation between extraversion features, Agreeableness, Consciousness and personal control to the degree of risk aversion, but no significant relationship was observed between personality characteristics and returns portfolios analysts. In addition, no significant relationship was observed between the type of fundamental analysis and technical analysts and degree of risk aversion.
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