Conflict of interest and the credibility of underwriter analyst recommendations

Review of Financial Studies

Volumn 12, Issue 4, 1999, Pages 653-686

  Michaely, Roni ^a   Womack, Kent L ^b  

^a The Samuel Curtis Johnson Graduate School of Management   (United States)

^b DARTMOUTH COLLEGE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0033442404     PISSN: 08939454     EISSN: None     Source Type: Journal    
DOI: 10.1093/rfs/12.4.653     Document Type: Article

References (27)

1. Allen, F., and G. Faulhaber, 1989, "Signaling by Underpricing in the IPO Market," Journal of Financial Economics, 23, 303-323.
2. Bhushan, R., 1989, "Firm Characteristics and Analyst Following," Journal of Accounting and Economics, 11, 255-274.
3. Canina, L., R. Michaely, R. Thaler, and K. L. Womack, 1998, "Caveat Compounder: A Warning About Using the CRSP Equal-Weighted Index to Compute Long-Run Excess Returns," Journal of Finance, 53, 403-416.
4. Dechow, P., A. Hutton, and R. Sloan, 1997, "The Relation Between Analysts' Long-Term Earnings Forecasts and Stock Price Performance Following Equity Offerings," working paper, Harvard Business School.
5. Dickey, J., 1995, "The New 'Entanglement' Theory: Securities Analysts Are Sued in Class Action Complaints," Insights, 9.
6. Dimson, E., and P. Marsh, 1986, "Event Study Methodologies and the Size Effect," Journal of Financial Economics, 17, 113-142.
7. Dorfman, J., 1991, "Heard on the Street," Wall Street Journal, October 19, page C1.
8. Dugar, A., and S. Nathan, 1995, "The Effect of Investment Banking Relationships on Financial Analysts' Earnings Forecasts and Investment Recommendations," Contemporary Accounting Research, 12, 131-160.
9. Ellis, K., R. Michaely, and M. O'Hara, 1999, "When the Underwriter is the Market Maker: An Examination of Trading in the IPO Aftermarket," working paper, Cornell University; forthcoming in Journal of Finance.
10. Elton, E., M. Gruber, and S. Grossman, 1986, "Discrete Expectational Data and Portfolio Performance," Journal of Finance, 41, 699-713.
11. Galant, D., 1992, "Going Public," Institutional Investor, April, 127-129.
12. Ibbotson, R., J. Sindelar, and J. Ritter, 1994, "The Market Problems with the Pricing of Initial Public Offerings," Journal of Applied Corporate Finance, 6, 66-74.
13. Irvine, P., 1995, "Market Reaction to Analyst Initiations," working paper, Emory University.
14. Kahneman, D., and D. Lovallo, 1993, "Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking," Management Science, 39, 17-31.
15. Krigman, L., W. Shaw, and K. L. Womack, 1999, "Why Do Firms Switch Underwriters?" working paper, Dartmouth College.
16. Lang, M., and R. Lundholm, 1997, "Voluntary Disclosure During Equity Offerings: Reducing Information Asymmetry or Hyping the Stock?" working paper, University of North Carolina, Chapel Hill.
17. Lin, H.-W., and M. McNichols, 1997, "Underwriting Relationships and Analysts' Earnings Forecasts and Investment Recommendations," working paper, Stanford University.
18. McLaughlin, J., 1994, "The Changing Role of the Securities Analyst in Initial Public Offerings," Insights, 5-14.
19. McNichols, M., and P. O'Brien, 1997, "Self-Selection and Analyst Coverage," Journal of Accounting Research, 35(suppl), 167-199.
20. Michaely, R., and W. Shaw, 1994, "The Pricing of Initial Public Offerings: Tests of Adverse Selection and Signaling Theories," Review of Financial Studies, 7, 279-319.
21. Raghavan, A., 1997, "How One Top Analyst Vaults 'Chinese Wall' to Do Deals for Firm," Wall Street Journal, March 25, page A1.
22. Rajan, R., and H. Servaes, 1996, "Analyst Following of Initial Public Offerings," Journal of Finance, 52, 507-529.
23. Ritter, J., 1991, "The Long-Run Performance of Initial Public Offerings," Journal of Finance, 46, 3-27.
24. Stickel, S., 1992, "Reputation and Performance Among Security Analysts," Journal of Finance, 47, 1811-1836.
25. Teoh, S., I. Welch, and T. J. Wong, 1998, "Earnings Management and the Long-Run Market Performance of Initial Public Offerings," Journal of Finance, 1935-1974.
26. White, H., 1980, "A Heteroscedasticity Consistent Covariance Matrix Estimator and a Direct Test of Heteroscedasticity," Econometrica, 48, 817-838.
27. Womack, K. L., 1996, "Do Brokerage Analysts' Recommendations Have Investment Value?" Journal of Finance, 51, 137-167.