The impact of all-star analyst job changes on their coverage choices and investment banking deal flow

• 成果类型: Article
• 署名作者: Clarke, Jonathan; Khorana, Ajay; Patel, Ajay; Rau, P. Raghavendra
• 署名单位: Purdue University System; Purdue University; University System of Georgia; Georgia Institute of Technology; Wake Forest University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.12.010
• 发表日期: 2007
• 页码: 713-737
• 关键词: all-star analyst; ANALYST COVERAGE; market share; Investment banking relationships; conflicts of interests

摘要

Using a sample of all-star analysts who switch investment banks, we examine (1) whether analyst behavior is influenced by banking relationships and (2) whether analyst behavior affects investment banking deal flow. Although the stock coverage decision depends on the relationship with the client firms, we find no evidence that analysts change their optimism or recommendation levels when joining a new firm. Investment banking deal flow is related to analyst reputation only for equity transactions. For debt and M&A transactions, analyst reputation does not matter. There is no evidence that issuing optimistic earnings forecasts or recommendations affects investment banking deal flow. (c) 2007 Elsevier B.V. All rights reserved.