| Summary: | 碩士 === 國立中正大學 === 財務金融系研究所 === 104 === The purpose of this paper is to find out whether the analysts have herding
behavior when they are forecasting the target prices. We also discuss whether the
investors who get the report will have herding behavior when they are investing.
There are three main results. First, most of the target prices have optimistic bias. The
accuracy of negative recommendation target price is better than the positive
recommendation target price. Second, when analysts forecast stock optimistically,
they will move away from the consensus forecast as they become more confident. But
if analysts have forecast error in the current quarter, they will herd from others. Third,
the investors in Taiwan are influenced by the target price bias when they are making
investment decisions.
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