In this paper, the authors examine when and why audiences make accurate evaluations of organizations that are categorically atypical. Using a large sample of US analysts’ earnings forecasts, they show that atypical firms are not necessarily misjudged, and that analysts with incoherent or atypical coverage tend to produce more accurate forecasts for atypical firms.
The study highlights the value of “unconventional” audience experience for understanding atypical actors.
Authors & affiliations:
- Pengfei Wang (BI Norwegian Business School).
- Jingjiang Liu (School of Management at Zhejiang University).
