Wealth transfer effects of analysts’ misleading behavior

• Main Authors: DE FRANCO, Gus, Hai LU, VASVARI, Florin P.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Global Settlement; Security Analysts; Conflicts of Interest; Institutional Holdings; Economic Theory
• Online Access: https://ink.library.smu.edu.sg/soa_research/1599; https://ink.library.smu.edu.sg/context/soa_research/article/2626/viewcontent/FRANCO_et_al_2007_Journal_of_Accounting_Research__1_.pdf
• Institution: Singapore Management University

We investigate a sample of 50 firm events, identified in the Global Research Analysts Settlement, in which analysts were discovered to have acted misleadingly ex-post. In this setting, analysts' incentives caused them to issue public disclosures that differed from their private beliefs. We docu...