...Chun-Ching Ho; Woan-yuh Jang Purpose This study investigates analysts’ sobering-up effect on future stock returns and further verifies whether analysts’ familiarity with the forecasted firms and market sentiment affect the relationship between the magnitude of the sobering-up effect on analysts...

... that crashes could be caused by overpriced stocks in the absence of bad news hoarding. The paper investigates crash from a perspective, financial analysts, that is underexplored. Information environment Credibility Market sentiment Analysts’ optimism Stock crash risk Robert Kim can...

...). Findings The analysis reveals that the degree of negative tone of their stock articles is related to three-day stock returns around the article posting dates. It further reveals that the relation between these returns and prevailing market sentiment depends on firm-specific susceptibility to the market...