Does abstract thinking facilitate information processing? Evidence from financial analysts

• Main Authors: LI, Frank Weikai, WANG, Rong, YU, Yang, YU, Gloria Yang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Abstract thinking; equity analyst; information processing; forecast accuracy; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7125; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8124/viewcontent/Abstract_thinking_20230915.pdf
• Institution: Singapore Management University

We study whether abstract thinking – an essential cognitive trait established by psychological and neuroscientific studies – facilitates analysts’ information processing. Exploiting analysts’ questions during earnings calls, we construct an Abstract Thinking Index (ATI) that measures their tendency...