Conflicts of Interest and Analyst Behavior: Evidence from Recent Changes in Regulation
Posted: 11 Aug 2010 Last revised: 14 Aug 2010
Date Written: August 11, 2010
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
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