Topic: Disentangling the Incentive of Analysts’ Herding Behavior: Evidence from Peer Effects
Speaker： Wang Zhao, Associate Professor at the School of International Economics and Management, Capital University of Economics and Business
Host: Professor Luo Ronghua, Executive Deputy Dean of the Institute of Chinese Financial Studies
Time: June 7, 14:00-17:00
Location: Room 618A, Gezhi Building
Organizers： School of Finance, Institute of Chinese Financial Studies, Research Office
Speaker’s Profile:
Wang Zhao, Associate Professor at the School of International Economics and Management, Capital University of Economics and Business, serves as a Master's supervisor, holding a Ph.D. in Finance from the University of Rhode Island, USA. Specializing in empirical corporate finance, his research scope encompasses investment efficiency, security analysts, and financial disclosures. His scholarly accomplishments are published in esteemed academic journals, including the Financial Analysts Journal, Pacific-Basin Finance Journal, and Economic Modelling. Dr. Wang contributes actively to the advancement of his field through participation in a funded project under the National Natural Science Foundation of China. Further extending his academic engagement, he fulfills the role of anonymous reviewer for several high-profile publications: the European Journal of Finance, International Review of Economics and Finance, and Emerging Markets Finance and Trade.
Lecture Preview：
This study examines the information-driven and imitation-driven explanations of herding behavior among security analysts. By identifying central analysts who possess informational advantages, we show a predominant influence of informational incentives over imitation. To test the robustness of our main findings, we compare the difference in informativeness between central and peripheral analysts. We find that the presence of central analysts, rather than peripheral analysts, explains the variation in price efficiency. We also show that central analysts influence price efficiency through the improved information environment and reduced information-processing costs.
