Publication in refereed journal
香港中文大学研究人员 ( 现职)
| 林晨教授 (金融学系) |
全文
| 数位物件识别号 (DOI) http://dx.doi.org/10.1111/j.1475-679X.2012.00469.x |
引用次数
Web of Sciencehttp://aims.cuhk.edu.hk/converis/portal/Publication/16WOS source URL
其它资讯
摘要This paper investigates whether the business relations between mutual funds and brokerage firms influence sell-side analyst recommendations. Using a unique data set that discloses brokerage firms commission income derived from each mutual fund client as well as the share holdings of these mutual funds, we find that an analyst's recommendation on a stock relative to consensus is significantly higher if the stock is held by the mutual fund clients of the analyst's brokerage firm. The optimism in analyst recommendations increases with the weight of the stock in a mutual fund client's portfolio and the commission revenue generated from the mutual fund client. However, this favorable recommendation bias toward a client's existing portfolio stocks is mitigated if the stock in question is highly visible to other mutual fund investors. Abnormal stock returns are significantly greater both for the announcement period and, in the long run, for favorable stock recommendations from analysts not subject to client pressure than for equally favorable recommendations from business-related analysts. In addition, we find that, subsequent to announcements of bad news from the covered firms, analysts are significantly less likely to downgrade a stock held by client mutual funds. Mutual funds increase their holdings in a stock that receives a favorable recommendation but this impact is significantly reduced if the recommendation comes from analysts subject to client pressure.
着者Firth M, Lin C, Liu P, Xuan YH
期刊名称Journal of Accounting Research
出版年份2013
月份3
日期1
卷号51
期次1
出版社WILEY-BLACKWELL
页次http://aims.cuhk.edu.hk/converis/portal/Publication/165 - 200
国际标準期刊号0021-8456
电子国际标準期刊号1475-679X
语言英式英语
Web of Science 学科类别Business & Economics; Business, Finance; BUSINESS, FINANCE
