Texas A&M University

About: Texas A&M University is a education organization based out in College Station, Texas, United States. It is known for research contribution in the topics: Population & Finite element method. The organization has 72169 authors who have published 164372 publications receiving 5764236 citations.

Inside the "Black Box" of sell-side financial analysts

Abstract: Our objective is to penetrate the “black box” of sell-side financial analysts by providing new insights into the inputs analysts use and the incentives they face. We survey 365 analysts and conduct 18 follow-up interviews covering a wide range of topics, including the inputs to analysts’ earnings forecasts and stock recommendations, the value of their industry knowledge, the determinants of their compensation, the career benefits of Institutional Investor All-Star status, and the factors they consider indicative of high-quality earnings. One important finding is that private communication with management is a more useful input to analysts’ earnings forecasts and stock recommendations than their own primary research, recent earnings performance, and recent 10-K and 10-Q reports. Another notable finding is that issuing earnings forecasts and stock recommendations that are well below the consensus often leads to an increase in analysts’ credibility with their investing clients. We conduct cross-sectional analyses that highlight the impact of analyst and brokerage characteristics on analysts’ inputs and incentives. Our findings are relevant to investors, managers, analysts, and academic researchers.

Maximization theory in behavioral psychology

Abstract: Maximization theory, which is borrowed from economics, provides techniques for predicing the behavior of animals - including humans. A theoretical behavioral space is constructed in which each point represents a given combination of various behavioral alternatives. With two alternatives - behavior A and behavior B - each point within the space represents a certain amount of time spent performing behavior A and a certain amount of time spent performing behavior B. A particular environmental situation can be described as a constraint on available points (a circumscribed area) within the space. Maximization theory assumes that animals always choose the available point with the highest numerical value. The task of maximization theory is to assign to points in the behavioral space values that remain constant across various environmental situations; as those situations change, the point actually chosen is always the one with the highest assigned value.Maximization theory is an alternative to reinforcement theory as a description of steady-state behavior. Situations to which reinforcement theory has been directly applied (such as reinforcement of rats pressing levers and pigeons pecking keys in Skinner boxes) and situations to which reinforcement theory has occasionally been extended (such as human economic behavior and human self-control) can be described by maximization theory. This approach views behavior as a quantitative outcome of the interaction of the putative instrumental response, the reinforcer, and the other activities available in the situation. It provides new insight into these situations and, because it takes context into account, has greater predictive power than reinforcement theory.

Self-affirmation and self-control: affirming core values counteracts ego depletion.

Abstract: Research has established that acts of self-control deplete a resource required for subsequent self-control tasks. The present investigation revealed that a psychological intervention-self-affirmation-facilitates self-control when the resource has been depleted. Experiments 1 and 2 found beneficial effects of self-affirmation on self-control in a depleted state. Experiments 3 and 4 suggested that self-affirmation improves self-control by promoting higher levels (vs. lower levels) of mental construal. Self-affirmation therefore holds promise as a mental strategy that reduces the likelihood of self-control failure.