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What’s in a Name? – Lessons in the World of Finance

In a working paper, UCLA Anderson’s Professor Brett Trueman and two collaborators analyzed 1.9 million company earnings forecasts from 1992 to 2018 to figure out the impact of analysts and CEOs having the same name. This is the implicit egotism effect occurring in the world of finance.

Their data shows that the relative accuracy of earnings forecasts issued by analysts with the same first name as that of the CEO of that firm was “significantly greater”, on average, than that of forecasts from analysts with different first names than the CEO’s in the finance sector.

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