Conflict of interest reforms and analysts’ research biases

• Main Authors: LU, Hai, Hai LU, GUAN, Yuyan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Analysts; Regulation; Conflict-of-interest; Global Settlement; Investment bank; Analyst bias; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1598; https://ink.library.smu.edu.sg/context/soa_research/article/2625/viewcontent/0148558x11409159__1_.pdf
• Institution: Singapore Management University

This study examines the consequences of the series of reforms targeting investment-banking-related conflicts of interest. We compare and contrast optimism biases in analysts’ stock recommendations and earnings forecasts across different types of analyst firms in the post-reform period 2004–2007 vers...