Analysts’ EPS Forecasts: The Effects of Forecast Uncertainty and Forecast Precision on Investors’ Judgments of Forecast Reliability

I use controlled experiments to investigate the joint effects of forecast precision and forecast uncertainty on investor judgments. I find that forecast precision moderates the effects of forecast uncertainty on investors’ forecast reliability judgments such that the effects of forecast uncertainty on investors’ judgments of forecast reliability are more negative when an analyst’s point earnings per share (EPS) forecast is round than when it is...