The effect of experience on security analyst underreaction

Michael B. Mikhail*, Beverly R. Walther, Richard H. Willis

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

95 Scopus citations


We examine if analysts more fully incorporate prior earnings and returns information in their current quarter forecasts as their experience following a firm increases. We measure analyst firm-specific forecasting experience as the number of prior quarters for which the analyst has issued an earnings forecast for the firm. We find that analysts underreact to prior earnings information less as their experience increases, suggesting one reason why analysts become more accurate with experience.

Original languageEnglish (US)
Pages (from-to)101-116
Number of pages16
JournalJournal of Accounting and Economics
Issue number1
StatePublished - Apr 2003


  • Earnings forecast
  • Experience
  • Security analyst
  • Underreaction

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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