caa a22 4500 46318744X CHVBK 20180406164858.0 cr unu---uuuuu 170326e20071101xx s 000 0 eng 10.1007/s11156-007-0037-8 doi (NATIONALLICENCE)springer-10.1007/s11156-007-0037-8 Do analysts overreact to extreme good news in earnings? [Elektronische Daten] [Zhaoyang Gu, Jian Xue] We provide an alternative explanation for the previous finding of analysts' overreaction to extreme good news in earnings. We show that such finding could be a result of analysts' rational behavior in the face of high earnings uncertainty rather than their cognitive bias. Extreme earnings performance tends to be associated with higher earnings uncertainty that generally leads to more forecast optimism. Once this effect is accounted for, the univariate result of analysts' overreaction to extreme good news in earnings is subsumed, leaving only their underreaction in general. Springer Science+Business Media, LLC, 2007 Financial analysts nationallicence Earnings forecast nationallicence Underreaction nationallicence Overreaction nationallicence Forecast bias nationallicence Gu Zhaoyang Tepper School of Business, Carnegie Mellon University, 15213-3890, Pittsburgh, PA, USA aut Xue Jian School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong aut Review of Quantitative Finance and Accounting Springer US; http://www.springer-ny.com 29/4(2007-11-01), 415-431 0924-865X 29:4<415 2007 29 11156 https://doi.org/10.1007/s11156-007-0037-8 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11156-007-0037-8 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Gu Zhaoyang Tepper School of Business, Carnegie Mellon University, 15213-3890, Pittsburgh, PA, USA aut NATIONALLICENCE 700 1- Xue Jian School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong aut NATIONALLICENCE 773 0- Review of Quantitative Finance and Accounting Springer US; http://www.springer-ny.com 29/4(2007-11-01), 415-431 0924-865X 29:4<415 2007 29 11156 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer