Analysts’ Forecasts and Institutional Investors’ Behavior

ASIAIR > College of Management > Department of Finance > Journal Article > Item 310904400/87087

Please use this identifier to cite or link to this item: http://asiair.asia.edu.tw/ir/handle/310904400/87087

Title:	Analysts’ Forecasts and Institutional Investors’ Behavior
Authors:	廖美華;LIAO, MEI-HUA;張嘉耘;Chang, Chia-Yun
Contributors:	財務金融學系
Keywords:	analyst forecast;investor behavior;information asymmetry
Date:	2014-07
Issue Date:	2014-11-19 08:20:16 (UTC+0)
Abstract:	Numerous studies have shown that investment banking affiliations generate pressure on analysts to produce optimistic recommendations regarding affiliated stocks. By using a sample of listed companies in Taiwan, this study examined the stock trading of dealer departments, the portfolios of which contained stocks rated by an affiliated analyst. Controlling for various factors, including the dealer affiliation, we conducted a comparison to determine whether the trading behavior for a stock by an affiliated dealer department led to more optimistic analyst forecasts when paralleled to the consensus. If systematic evidence exists regarding dealer trading on the information of analysts' stock price forecasts, information processing is central to the role of the dealer. Therefore, the leakage of confidential information received by traded stocks could result in critical costs. Creating information asymmetry among investors could adversely affect the liquidity of public markets.
Relation:	The Eighth International Conference on Innovative Mobile and Internet Services in Ubiquitous Computing (IMIS-2014)
Appears in Collections:	[Department of Finance] Journal Article

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