A recent McKinsey study finds that industry changes have done little to dampen analysts' heightened earnings expectations.
Alix Stuart, CFO.com | US
May 13, 2010
Somebody is doing a really poor job of analysis. If research studies have demonstrated a trend toward optimism as a behavioral trait among humans, then why would financial analysts not factor that into "complex" models for forecasting earnings, i.e., control for their own bias toward over confidence. The gender correlation also appears highly suspect (did the researchers remove the effect of job experience, age, etc?). This article falls short of critical thinking, sorry.
Posted by Michael Harry | May 17, 2010 02:03 pm© CFO Publishing Corporation 2009. All rights reserved.