Experience, Information Asymmetry, and Rational Forecast Bias

Table 2.7 Alternate proxies for information asymmetry

		Experience²	Relative experience²		Experience²	Relative experience²
	Inf. asymmetry	Inf. Asymmetry	Inf. asymmetry	Inf. asymmetry	Inf. asymmetry	Inf. asymmetry
	Reg. FD	Reg. FD	Reg. FD	Reg. FD	Reg. FD	Reg. FD
	NumRevisions	NumRevisions	NumRevisions	NumRevisions	NumRevisions	NumRevisions
	SameQtr	SameQtr	SameQtr	SameQtr	SameQtr	SameQtr
	Controls	Controls	Controls	Controls	Controls	Controls
	1	2	3	4	5	6
Panel A: Analyst coverage⁻¹
DFC	−1.079***	−1.081***	−1.079***	−0.446***	−0.456***	−0.444***
	[0.009]	[0.009]	[0.009]	[0.017]	[0.016]	[0.017]
DFC squared				−0.050***	−0.050***	−0.050***
				[0.001]	[0.001]	[0.001]
Constant	2.171**	2.347***	2.150**	1.523*	1.762**	1.508*
	[0.851]	[0.851]	[0.851]	[0.842]	[0.840]	[0.841]
Observations	266,708	266,708	266,708	266,708	266,708	266,708
# Brokerage houses	130	130	130	130	130	130
Panel B: Relative firm size
DFC	−1.046***	−1.048***	−1.046***	−0.496***	−0.496***	−0.496***
	[0.008]	[0.008]	[0.008]	[0.015]	[0.015]	[0.015]
DFC squared				−0.041***	−0.042***	−0.041***
				[0.001]	[0.001]	[0.001]
Constant	1.505***	1.513***	1.504***	1.100***	1.122***	1.100***
	[0.066]	[0.066]	[0.066]	[0.066]	[0.066]	[0.066]
Observations	217,126	217,126	217,126	217,126	217,126	217,126
# Brokerage houses	124	124	124	124	124	124

^*, ^**, and ^*** indicate significance levels of 10 %, 5 %, and 1 %, respectively