Rest and financial judgments: The impact of holidays on analyst accuracy

Sima Jannati

Journal of Banking & Finance, 2025, vol. 173, issue C

Abstract: I examine whether holidays affect the forecast accuracy of equity analysts. I find that earnings forecasts issued after holidays are, on average, more accurate than those issued before. Economically, this effect is equivalent to the impact of 73 months of experience on analyst accuracy. Using heuristic behavior as a proxy for improved rest, I find that analysts’ use of heuristics declines after holidays. I examine and rule out greater information availability, increased attention, and changes in sentiment as alternative mechanisms. Overall, the results suggest that short breaks from work meaningfully improve the quality of analysts’ performance.

Keywords: Holidays; Rest; Heuristics; Earnings forecast accuracy; Boldness (search for similar items in EconPapers)
JEL-codes: G00 G24 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:173:y:2025:i:c:s0378426625000202

DOI: 10.1016/j.jbankfin.2025.107399

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