Cross-Extrapolative Beliefs: Evidence from Equity Analysts

The authors thank three anonymous referees, an anonymous associate editor, the editor (Camelia Kuhnen), Aleksandar Andonov, Sjoerd van Bekkum, Daniel Bradley, Josefina Cenzon, Fabrizio Core, Francesco D’Acunto, Ingolf Dittman, Bruce Grundy, Rob Hansen (discussant), Jerry Hoberg, Dušan Isakov (discussant), Feng Jiang (discussant), Arthur Korteweg, Yaron Levi, Anastasios Maligkris (discussant), Stefan Obernberger, Anna Scherbina (discussant), Geoffrey Tate, Francisco Urzúa, Vadym Volosovych, Martijn de Vries, Ben Zhang, Remco Zwinkels, and conference/seminar participants at Amsterdam Business School, CEIBS, Erasmus University Rotterdam, Fudan, NOVA SBE, Université Paris-Dauphine, VU Amsterdam, AFBC 2017, Paris December Meeting 2018, RBFC 2018, SFS Cavalcade 2019, CICF 2019, and Helsinki Finance Summit for insightful comments. Part of this paper was written while Rex was visiting the USC Marshall School of Business. An earlier version of this paper was circulated under the title “Noise from Other Industries: Overgeneralization and Analyst Beliefs.”