Local versus foreign analysts' forecast accuracy: does herding matter?

The aim of this paper is to compare the information and resource endowments possessed by different analyst types, classified both location employment within context seven emerging Asian markets. Our results show that local analysts are more accurate than expatriate global when we consider all earnings forecasts. However, control for segregated herding behaviour analysts, find forecasts one least compared other By contrast, bold (that is, non-herding local) This suggests endowment superior analysts. We accuracy does not stem from business group affiliations, investment banking relationships, demand analysts’ services or specialisation vis-à-vis countries sectors. consistently better at assessing firm they forecast. prior documented advantage in terms forecasting driven with locals diluting effect. To best our knowledge, first study explore local, its impact on relative forecast across types.