Regulatory effects on Analysts' conflicts of interest in corporate financing activities: Evidence from NASD Rule 2711

doi:10.1016/j.jcorpfin.2017.12.020

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	Regulatory effects on Analysts' conflicts of interest in corporate financing activities: Evidence from NASD Rule 2711
	Chen, Peter F.1; Novoselov, Kirill E.2; Wang, Yihong 2
刊名	JOURNAL OF CORPORATE FINANCE
	2018-02
卷号	48 页码:658-679
关键词	Conflicts of interest NASD rule 2711 analysts' guidance External financing Stock returns
ISSN号	0929-1199
DOI	10.1016/j.jcorpfin.2017.12.020
英文摘要	We investigate the effects of NASD Rule 2711 on analysts' conflict of interest in corporate financing activities. Specifically, we examine the relations (1) between analysts' guidance in earnings forecasts and recommendations and corporate external financing and (2) between external financing and future stock returns during the 1994-2010 period. We find a positive relation of analysts' guidance in earnings forecasts and recommendations (especially long-term growth forecast and recommendations) and corporate financing activities, but the relation is weaker in the post-Rule period than in the pre-Rule period. We also find a negative relation between corporate external financing and future stock returns, but the relation is weaker in the post-Rule period. Moreover, the changes of these relations after the implementation of the Rule are greater for firms with greater conflicts of interest Our empirical results suggest that Rule 2711 has reduced the extent of analysts' conflicts of interest in corporate financing activities. (C) 2017 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000424721900034
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/702]
专题	上海财经大学
通讯作者	Chen, Peter F.
作者单位	1.Hong Kong Univ Sci & Technol, Hong Kong, Peoples R China; 2.Shanghai Univ Finance & Econ, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Chen, Peter F.,Novoselov, Kirill E.,Wang, Yihong. Regulatory effects on Analysts' conflicts of interest in corporate financing activities: Evidence from NASD Rule 2711[J]. JOURNAL OF CORPORATE FINANCE,2018,48:658-679.
APA	Chen, Peter F.,Novoselov, Kirill E.,&Wang, Yihong.(2018).Regulatory effects on Analysts' conflicts of interest in corporate financing activities: Evidence from NASD Rule 2711.JOURNAL OF CORPORATE FINANCE,48,658-679.
MLA	Chen, Peter F.,et al."Regulatory effects on Analysts' conflicts of interest in corporate financing activities: Evidence from NASD Rule 2711".JOURNAL OF CORPORATE FINANCE 48(2018):658-679.