Conflicts of Interest and Stock Recommendations: The Effects of the Global Settlement and Related Regulations

• Main Authors: WANG, Rong, Kadan, Ohad, Madureira, Leonardo, Zach, Tzachi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3810; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4809/viewcontent/2005_10_005.pdf
• Institution: Singapore Management University

Prior research has shown that sell-side analysts in general, and especially those facing conflicts of interest driven by investment bank relationships, issue overly optimistic recommendations. This paper studies the effect of regulations on sell-side analysts’ research. These regulations — Rule NASD 2...