Reining in analysis: Evidence from the global settlement

Chadwick, Jackson (2015). Reining in analysis: Evidence from the global settlement Honours Thesis, School of Business, The University of Queensland.

       
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Author Chadwick, Jackson
Thesis Title Reining in analysis: Evidence from the global settlement
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 2015
Thesis type Honours Thesis
Supervisor Vanitha Ragunathan
Kathy Herbohn
Total pages 97
Language eng
Subjects 1503 Business and Management
Formatted abstract
This thesis quantifies the impact of the Global Settlement and other related regulation on the standards applied by sell-side analysts when providing recommendations. Using a sample of 51,584 firm quarter consensus recommendations over the period 1994 to 2008, there is evidence that following the Global Settlement, the standards applied by analysts are significantly more stringent. This result suggests that the regulatory reform was successful in mitigating analyst over-optimism. Moreover, the application of stricter standards is persistent in all years following the regulatory reform. Further analysis reveals that the standards applied by the ten brokers sanctioned in the Global Settlement are significantly more stringent following the regulatory reforms than non-sanctioned brokers, despite both groups operating within the same regulatory environment.

 
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Created: Tue, 22 Mar 2016, 15:49:11 EST by Susan Peeters on behalf of UQ Business School