Finally, this study evaluated the market reaction before and after the Global Settlement Agreement that was enacted to limit the perceived conflicts in the industry. Non-independent upgrades generated a 19.7 percent greater reaction in the post-regulation period suggesting the Global Settlement Agreement helped mitigate biased research. Independent analysts were found to continue to issue less informative recommendations after the Global Settlement. These findings call into question whether the Global Settlement Agreement provided investors with better, timelier research.Following Cowen et al. (2006), Barber et al. (2007) and Jacob et al. (2008) I utilize Nelsona#39;s Directory of Investment Research (1996-2006) to classify firms. Firms that appear in the IBES dataset and also appear in the Nelsona#39;s directory wereanbsp;...
|Title||:||Do Independent Research Analysts Issue More Informative Recommendation Revisions?|
|Author||:||Ryan Joseph Casey|
|Publisher||:||ProQuest - 2009|