Economic policy uncertainty and analyst behaviours: evidence from the United Kingdom  

Min Chen, Zhaobo Zhu*, Bo Chen, Peiwen Han, Jia Liu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper documents that both domestic and cross-country economic policy uncertainty have significant impacts on the behaviours of domestic analysts in the United Kingdom. Specifically, domestic economic policy uncertainty has significant negative impacts on analyst earnings forecast accuracy, dispersion, and both analyst recommendation upgrades and downgrades, whereas it has no significant impact on analyst coverage in the United Kingdom. An industry analysis shows that the effects of policy uncertainties on analyst behaviours vary across industries. Moreover, European and global economic policy uncertainty have similar cross- country impacts as U.K. policy uncertainty on analyst behaviours in the United Kingdom, whereas U.S. policy uncertainty exhibits different impacts. This study presents novel and comprehensive evidence of the impacts of policy uncertainty on an important information intermediary that has significant influences on capital market efficiency, providing practical implications for investors, analysts, corporate managers, and policy makers.
Original languageEnglish
JournalInternational Review of Financial Analysis
Publication statusAccepted for publication - 20 Sep 2021


  • Economic policy uncertaintly
  • analyst earnings forecast accuracy
  • forecast dispersion
  • analyst coverage
  • analyst stock recommendations


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