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Do you mean "incentive to predict conservatively" rather than "incentive to under-predict"?
by aspiringsensei 16y ago
Do you mean "incentive to predict conservatively" rather than "incentive to under-predict"?
- brown9-2 16y agoSort of, "conservatively" would imply "keeping it safe" when predicting earnings, but I was really trying to raise the question of if the firms have anything to gain by deliberately making public predictions that are lower than they truly believe.