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Conflicts of Interest in Sell-Side Research and the Moderating Role of Institutional Investors
16 references·16 citing·46 second hopsampled
Conflicts of Interest in Sell-Side Research and the Moderating Role of Institutional Investors (2005)Conflicts of Interest in Sell-Side Resear…Shareholder investment horizons and the market for corporate control (2004)Shareholder investment horizo…Voting with their feet: institutional ownership changes around forced CEO turnover (2003)Voting with their feet: insti…Institutional Investors and Executive Compensation (2003)Institutional Investors and E…Analyzing the Analysts: Career Concerns and Biased Earnings Forecasts (2003)Analyzing the Analysts: Caree…Management's Incentives to Avoid Negative Earnings Surprises (2002)Management's Incentives to Av…Rationality and Analysts' Forecast Bias (2001)Rationality and Analysts' For…Capital markets research in accounting (2001)Capital markets research in a…Security Analysts' Career Concerns and Herding of Earnings Forecasts (2000)Security Analysts' Career Con…Conflict of Interest and the Credibility of Underwriter Analyst Recommendations (1999)Conflict of Interest and the …Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter? (1999)Analyst forecast accuracy: Do…Underwriting relationships, analysts' earnings forecasts and investment recommendations (1998)Underwriting relationships, a…Industry costs of equity (1997)Industry costs of equityReputation and Performance Among Security Analysts (1992)Reputation and Performance Am…Venture Capitalist Certification in Initial Public Offerings (1991)Venture Capitalist Certificat…Analysts' forecasts as earnings expectations (1988)Analysts' forecasts as earnin…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Can FinTech Competition Improve Sell-Side Research Quality? (2021)Can FinTech Competition Impro…Do Corporate Disclosures Constrain Strategic Analyst Behavior? (2020)Do Corporate Disclosures Cons…Investment banking relationships and analyst affiliation bias: The impact of the global settlement on sanctioned and non-sanctioned banks (2017)Investment banking relationsh…Corporate social responsibility disclosure (2017)Corporate social responsibili…Friends in Need Are Friends Indeed: An Analysis of Social Ties between Financial Analysts and Mutual Fund Managers (2016)Friends in Need Are Friends I…Political contributions and analyst behavior (2015)Political contributions and a…The Effect of Media Competition on Analyst Forecast Properties: Cross-Country Evidence (2014)The Effect of Media Competiti…When Do Sell‐side Analyst Reports Really Matter? Shareholder Protection, Institutional Investors and the Informativeness of Equity Research (2013)When Do Sell‐side Analyst Rep…Analyst Target Price Optimism Around the World (2012)Analyst Target Price Optimism…Market demand for conservative analysts (2010)Market demand for conservativ…Why Don’t Analysts Use Their Earnings Forecasts in Generating Stock Recommendations? (2009)Why Don’t Analysts Use Their …Analysts Get SAD Too: The Effect of Seasonal Affective Disorder on Stock Analysts' Earnings Estimates (2009)Analysts Get SAD Too: The Eff…The Effect of Disclosures by Management, Analysts, and Financial Press on Cost of Capital, Return Volatility, and Analyst Forecasts: A Study Using Content Analysis (2008)The Effect of Disclosures by …Security Offerings**We thank Robert S. Hansen, Jay Ritter and Xueping Wu for suggestions. (2007)Security Offerings**We thank …The Economics of Conflicts of Interest in Financial Institutions (2006)The Economics of Conflicts of…Conflicts of Interest and Stock Recommendations: The Effects of the Global Settlement and Related Regulations (2005)Conflicts of Interest and Sto…Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)Corporate governance in the 2007–2008 financial crisis: Evidence from financial institutions worldwide (2012)Behind the Scenes: The Corporate Governance Preferences of Institutional Investors (2016)Corporate green bonds (2021)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Cross-Section of Expected Stock Returns (1992)Multifactor Explanations of Asset Pricing Anomalies (1996)Measuring Mutual Fund Performance with Characteristic‐Based Benchmarks (1997)Conditional Skewness in Asset Pricing Tests (2000)The Long‐Run Performance of initial Public Offerings (1991)Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking (1993)Earnings Management and the Long‐Run Market Performance of Initial Public Offerings (1998)Herd Behavior in Financial Markets (2000)Stock price reaction to news and no-news: drift and reversal after headlines (2003)Analyzing the Analysts: When Do Recommendations Add Value? (2004)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Earnings Management During Import Relief Investigations (1991)Debt covenant violation and manipulation of accruals (1994)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting (2010)Detecting Earnings Management (2012)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)Auditor independence, ‘low balling’, and disclosure regulation (1981)Financial Intermediation, Loanable Funds, and The Real Sector (1997)The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle (1998)Interorganizational Endorsements and the Performance of Entrepreneurial Ventures (1999)Performance Pay and Top-Management Incentives (1990)Good Day Sunshine: Stock Returns and the Weather (2003)Why Has IPO Underpricing Changed Over Time (2004)Who Blows the Whistle on Corporate Fraud? (2010)Large Shareholders and Corporate Control (1986)The investment opportunity set and corporate financing, dividend, and compensation policies (1992)Pay without performance: the unfulfilled promise of executive compensation (2005)Monitoring: Which institutions matter? (2007)Corporate Social Responsibility as a Conflict Between Shareholders (2010)Judgment under Uncertainty: Heuristics and Biases (1974)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Econometrics of Event Studies**We thank Espen Eckbo, Jon Lewellen, Adam Kolasinski, and Jay Ritter for insightful comments, and Irfan Safdar and Alan Wancier for research assistance. (2007)Driven to Distraction: Extraneous Events and Underreaction to Earnings News (2009)Investor Inattention and Friday Earnings Announcements (2009)The Influence of Analysts, Institutional Investors, and Insiders on the Incorporation of Market, Industry, and Firm-Specific Information into Stock Prices (2004)Inside the 'Black Box' of Sell-Side Financial Analysts (2013)
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References

  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1997Industry costs of equity5,793 cited
  • 2001Capital markets research in accounting2,575 cited
  • 1991Venture Capitalist Certification in Initial Public Offerings2,322 cited
  • 2003Institutional Investors and Executive Compensation2,012 cited
  • 2002Management's Incentives to Avoid Negative Earnings Surprises1,615 cited
  • 1999Conflict of Interest and the Credibility of Underwriter Analyst Recommendations1,549 cited
  • 2003Analyzing the Analysts: Career Concerns and Biased Earnings Forecasts1,471 cited
  • 1999Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter?1,428 cited
  • 2004Shareholder investment horizons and the market for corporate control1,271 cited
  • 1998Underwriting relationships, analysts' earnings forecasts and investment recommendations1,248 cited
  • 2000Security Analysts' Career Concerns and Herding of Earnings Forecasts1,152 cited
  • 2001Rationality and Analysts' Forecast Bias1,012 cited
  • 2003Voting with their feet: institutional ownership changes around forced CEO turnover1,009 cited
  • 1988Analysts' forecasts as earnings expectations985 cited

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  • 1992Reputation and Performance Among Security Analysts980 cited
  • Cited by

    • 2016Friends in Need Are Friends Indeed: An Analysis of Social Ties between Financial Analysts and Mutual Fund Managers171 cited
    • 2015Political contributions and analyst behavior147 cited
    • 2007Security Offerings**We thank Robert S. Hansen, Jay Ritter and Xueping Wu for suggestions.130 cited
    • 2008The Effect of Disclosures by Management, Analysts, and Financial Press on Cost of Capital, Return Volatility, and Analyst Forecasts: A Study Using Content Analysis113 cited
    • 2017Investment banking relationships and analyst affiliation bias: The impact of the global settlement on sanctioned and non-sanctioned banks96 cited
    • 2006The Economics of Conflicts of Interest in Financial Institutions90 cited
    • 2005Conflicts of Interest and Stock Recommendations: The Effects of the Global Settlement and Related Regulations86 cited
    • 2020Do Corporate Disclosures Constrain Strategic Analyst Behavior?67 cited
    • 2010Market demand for conservative analysts67 cited
    • 2009Analysts Get SAD Too: The Effect of Seasonal Affective Disorder on Stock Analysts' Earnings Estimates53 cited
    • 2017Corporate social responsibility disclosure53 cited
    • 2021Can FinTech Competition Improve Sell-Side Research Quality?52 cited
    • 2012Analyst Target Price Optimism Around the World32 cited
    • 2009Why Don’t Analysts Use Their Earnings Forecasts in Generating Stock Recommendations?31 cited
    • 2013When Do Sell‐side Analyst Reports Really Matter? Shareholder Protection, Institutional Investors and the Informativeness of Equity Research29 cited
    • 2014The Effect of Media Competition on Analyst Forecast Properties: Cross-Country Evidence29 cited