Hype my stock: Do firms really want biased research?

• Main Author: LOH, Roger
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Conflicts of Interest; Affiliation Bias; Security Analysts; Investment banks; Corporate Governance; Biased Research; Stock Recommendations; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5333; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6332/viewcontent/SSRN_id1102719.pdf
• Institution: Singapore Management University

Analyst research is alleged to be biased because of conflicts of interest when analysts’ employers underwrite securities for the firms covered. I posit that affiliated analyst optimism should be the strongest for offering firms with a desire to over-inflate stock prices. I hypothesize that a firm’s...