The Herding in Earnings Forecasts in Thai Stock Market
Post by MSF Chula at Monday, 17 December 2018 12:11 PM

The herding is one behavior occurred in financial market; both investors and experts tend to herd toward majority. The studies in foreign market finds the herding behavior has tendency to induce the financial crisis and also finds the experts also have herding behavior. This study, hence focuses on characteristics and accuracy of herding in earnings forecasts or herding from analysts to help the market participants finding the best earnings forecasts as well as the accuracy during crisis in 2008. The herding level of forecasts are significantly increased from accuracy in previous period and foreign broker meanwhile the experienced and foreign analyst do not have effect on herding level in general.  Another finding is that the herding forecasts and accuracy in previous period increase the forecast accuracy, on the other hands, the foreign broker and analyst decrease forecast accuracy. Therefore, the back tracking accuracy is the characteristic can reflect the current accuracy.  During crisis, forecast accuracy can be reduced by herding, because of the unexpected situation.

Last updated at Monday, 17 December 2018 12:11 PM