Overconfident institutions and their self-attribution bias: Evidence from earnings announcements Chou, Hsin-I, Li, Mingyi, Yin, Xiangkang and Zhao, Jing 2020, Overconfident institutions and their self-attribution bias: Evidence from earnings announcements, Journal of Financial and Quantitative Analysis, doi: 10.1017/S002210902000037X. Attached Files Name Description MIMEType Size Downloads Title Overconfident institutions and their self-attribution bias: Evidence from earnings announcements Author(s) Chou, Hsin-I Li, Mingyi Yin, Xiangkang orcid.org/0000-0002-7031-414X Zhao, Jing Journal name Journal of Financial and Quantitative Analysis Total pages 33 Publisher Cambridge University Press (CUP) Place of publication Cambridge, Eng. Publication date 2020-01-01 ISSN 0022-1090 1756-6916 Summary Institutional demand for a stock before its earnings announcement is negatively related to subsequent returns. The relation is not attributable to the price pressure of institutional demand and is stronger for stocks with higher information asymmetry and/or greater valuation difficulty. These findings support the notion that overconfident institutions misprice stocks. Following announcements, institutions’ behavior exhibits the outcome-dependent feature of self-attribution bias. Whether they become more overconfident and delay their mispricing correction depends on whether earnings news confirms their preannouncement trades. This behavioral bias also offers a new explanation for the well-known post-earnings-announcement drift. Language eng DOI 10.1017/S002210902000037X Indigenous content off Field of Research 1501 Accounting, Auditing and Accountability 1502 Banking, Finance and Investment HERDC Research category C1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2020, The Authors Persistent URL http://hdl.handle.net/10536/DRO/DU:30140752 Document type: Journal Article Collections: Faculty of Business and Law Department of Finance Related Links Link Description Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Wed, 12 Aug 2020, 08:47:57 EST Wed, 12 Aug 2020, 08:48:28 EST Thu, 13 Aug 2020, 05:00:19 EST Thu, 13 Aug 2020, 22:37:01 EST Tue, 10 Nov 2020, 15:47:14 EST Wed, 11 Nov 2020, 05:02:42 EST Wed, 11 Nov 2020, 10:06:35 EST Wed, 11 Nov 2020, 10:10:45 EST Wed, 11 Nov 2020, 11:17:11 EST Filtered Full Citation counts:   Cited 0 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 70 Abstract Views, 1 File Downloads  -  Detailed Statistics Created: Tue, 10 Nov 2020, 15:47:14 EST

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