|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id1910115. ; Size: 290K
|
|
Equity Analysts Affiliated with Corporate Lenders
David C. Cicero
University of Tennessee, Knoxville
Swaminathan L. Kalpathy
Southern Methodist University
Johan Sulaeman
Southern Methodist University (SMU) - Edwin L. Cox School of Business
August 1, 2011
Abstract:
We provide evidence that the research of equity analysts affiliated with corporate lenders reflects private information obtained through the commercial lending relationships. Lender-affiliated analysts improve the accuracy of their earnings forecasts on borrowers after a lending relationship is established, and publish more accurate research prior to adverse credit-related events. Lender-affiliated analysts’ accuracy gains increase in their geographic proximity to the lending activity. Furthermore, we find evidence that analysts induce a positive recommendation bias to help secure the lending business. Lending-related informational advantages persist beyond Regulation FD and the Global Settlement, but the strategic use of bias ends with these regulations.
Number of Pages in PDF File: 61
working papers series
Download This Paper
Date posted: December 24, 2009
; Last revised: August 16, 2011
Suggested CitationCicero, David C., Kalpathy, Swaminathan L. and Sulaeman, Johan, Equity Analysts Affiliated with Corporate Lenders (August 1, 2011). Available at SSRN: http://ssrn.com/abstract=1527855 or http://dx.doi.org/10.2139/ssrn.1527855
|
| Feedback to SSRN (Beta) |
|
|
|
|
|
|
