Conflicts of interest in sell-side research and the moderating role of institutional investors

• 成果类型: Article; Proceedings Paper
• 署名作者: Ljungqvist, Alexander; Marston, Felicia; Starks, Laura T.; Wei, Kelsey D.; Yan, Hong
• 署名单位: New York University; University of Virginia; University of Texas System; University of Texas Austin; University of Texas System; University of Texas Dallas; University of South Carolina System; University of South Carolina Columbia; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.12.004
• 发表日期: 2007
• 页码: 420-456
• 关键词: analyst recommendations; analyst forecast accuracy; investment banking; Conflicts of interest; institutional investors; BANKING RELATIONSHIPS

摘要

Because sell-side analysts are dependent on institutional investors for performance ratings and trading commissions, we argue that analysts are less likely to succumb to investment banking or brokerage pressure in stocks highly visible to institutional investors. Examining a comprehensive sample of analyst recommendations over the 1994-2000 period, we find that analysts' recommendations relative to consensus are positively associated with investment banking relationships and brokerage pressure but negatively associated with the presence of institutional investor owners. The presence of institutional investors is also associated with more accurate earnings forecasts and more timely re-ratings following severe share price falls. (C) 2006 Published by Elsevier B.V.