Analyst Impartiality and Investment Banking Relationships

By P. O'Brien, Maureen F. McNichols, Lin Hsiou-Wei. 2005

381 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/18554136fa64b26dab031f381f87668aec9fc63b

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Chen Lin
2. Boris Groysberg
3. Tao Chen
4. Xu Li
5. Shuping Chen
6. Lawrence D. Brown
7. S. Kothari
8. David H. Bailey

In Finance

1. Boris Groysberg
2. Xu Li
3. Shuping Chen
4. Lawrence D. Brown
5. David H. Bailey
6. Chen Lin
7. James E. Short
8. Jarrad Harford

Citations in the corpus

• Analysts’ Forecasts: What Do We Know after Decades of Work? (2011, positive): “Numerous studies document significantly more optimistic forecasts and recommendations for affiliated analysts (e.g., Lin and McNichols 1998, Michaely and Womack 1999, Dechow, Hutton, and Sloan 2000, Lin, McNichols, and O’Brien (2005).”
• Which Types of Analyst Firms Are More Optimistic (2006, background): “…with bad news, for investment banking clients than for non-banking clients (Lin and McNichols, 1998; Michaely and Womack, 1999; Dechow et al., 2000; O’Brien et al., 2005).4 Hong and Kubik (2003) found that analysts were rewarded for making optimistic forecasts, particularly for underwriting…”
• Affiliated mutual funds and analyst optimism (2007, neutral): “In Ritter and Zhang (2007), the analysis of the ties between investment banks and their affiliated mutual funds during initial public offerings (IPOs) indicates that investment banking departments support the performance of asset management departments.”
• The Economics of Conflicts of Interest in Financial Institutions (2006, neutral): “Puri (1994) shows that bank-underwritten bonds during that period had a lower mortality rate than bonds underwritten by investment banks.”
• The Informational Role of Bond Analysts (2009, neutral): “See, e.g., Dugar and Nathan (1995), Lin and McNichols (1998), Michaely and Womack (1999), Dechow, Hutton, and Sloan (2000), and O'Brien, McNichols, and Lin (2005).”
• Analysts’ Forecasts and Asset Pricing: A Survey (2016, neutral): “Another stream of the literature examines the link between investment banking incentives and analysts coverage decisions (e.g., Dunbar, 2000; Krigman et. al., 2001; Bradley et al., 2003; Cliff and Denis, 2004; Ljungqvist et. al., 2006; O'Brien et al., 2005; James and Karceski, 2006; McNichols et al.”