Conflicts of Interest and Analyst Behavior: Evidence from Recent Changes in Regulation

Posted: 11 Aug 2010 Last revised: 14 Aug 2010

See all articles by Armen Hovakimian

Armen Hovakimian

Baruch College - Zicklin School of Business

Ekkachai Saenyasiri

Hong Kong University of Science & Technology (HKUST) - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: August 11, 2010

Abstract

Regulation FD made analysts less dependent on insider information and diminished analysts’ motives to inflate their forecasts. The Global Research Analyst Settlement had an even bigger impact on analyst behavior: The mean forecast bias declined significantly, whereas the median forecast bias essentially disappeared. These results are similar for all analysts.

Keywords: Standards, Ethics, and Regulation (SER,: Applicable Laws and Regulations, Governmental Institutions, Rules, and Regulations, Rules and Procedures Regarding Corporate Transactions and Insider Trading

Suggested Citation

Hovakimian, Armen and Saenyasiri, Ekkachai, Conflicts of Interest and Analyst Behavior: Evidence from Recent Changes in Regulation (August 11, 2010). Financial Analysts Journal, Vol. 66, No. 4, pp. 96-107, 2010. Available at SSRN: https://ssrn.com/abstract=1656981

Armen Hovakimian (Contact Author)

Baruch College - Zicklin School of Business ( email )

One Bernard Baruch Way
Box B10-225
New York, NY 10010
United States
646-312-3490 (Phone)
646-312-3451 (Fax)

HOME PAGE: http://zicklin.baruch.cuny.edu/faculty-profile/armen-hovakimian/

Ekkachai Saenyasiri

Hong Kong University of Science & Technology (HKUST) - Department of Finance ( email )

Clear Water Bay, Kowloon
Hong Kong

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