Social Jetlag and Financial Decision-Making

• In Event: Current Issues in Accounting

Abstract

This paper tests whether social jetlag impacts financial judgments and markets. We find that earnings forecasts issued by analysts that are prone to social jetlag are more likely to herd, leading to less accurate forecasts. As the social and biological clocks of analysts align, the impact of social jetlag is reduced. We show that market participants do not recognize this phenomenon. Overall, we contribute to the behavioral finance literature concerned with unbiased information processing.

Authors

• Sima Jannati, University of Missouri

• Sarah Khalaf, Kuwait University