First impressions can sway financial professionals’ forecasts of firms for up to 6 years

A new study looked at the influence among finance professionals of first impression bias of firms’ performance, which spurs people to place undue weight on early experiences. The study found that equity analysts placed greater emphasis on early impressions than later ones, that negative first impressions had more power than positive ones, and that first impression bias could influence forecasts of a firm by a financial professional for up to 6 years.