Do broker/analyst conflicts matter? Detecting evidence from internet trading platforms

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F12%3A00392390" target="_blank" >RIV/00216208:11640/12:00392390 - isvavai.cz</a>

Výsledek na webu

<a href="http://mme2012.opf.slu.cz/proceedings/pdf/044_Hanousek.pdf" target="_blank" >http://mme2012.opf.slu.cz/proceedings/pdf/044_Hanousek.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Do broker/analyst conflicts matter? Detecting evidence from internet trading platforms

Popis výsledku v původním jazyce

We analyze the potential conflict of interest between analysts and brokers associated with each other. In contrast to the existing literature we do not analyze prediction accuracy and/or biases in analyst recommendations. Instead we focus our analysis onbrokers and examine whether their behavior systematically differs before and after investment recommendations are released. The evolution and dynamics of brokers quotes and trades are used to test for systematic trading patterns around the release of one's own investment recommendation. In the model we control for brokers' responses to other investment advice and employ a SUR estimation framework. Data from the Prague Stock Exchange are used to demonstrate our methodology. Finding significant and systematic differences in brokers' behavior, we conclude that misuse of investment recommendations is widespread.

Název v anglickém jazyce

Do broker/analyst conflicts matter? Detecting evidence from internet trading platforms

Popis výsledku anglicky

We analyze the potential conflict of interest between analysts and brokers associated with each other. In contrast to the existing literature we do not analyze prediction accuracy and/or biases in analyst recommendations. Instead we focus our analysis onbrokers and examine whether their behavior systematically differs before and after investment recommendations are released. The evolution and dynamics of brokers quotes and trades are used to test for systematic trading patterns around the release of one's own investment recommendation. In the model we control for brokers' responses to other investment advice and employ a SUR estimation framework. Data from the Prague Stock Exchange are used to demonstrate our methodology. Finding significant and systematic differences in brokers' behavior, we conclude that misuse of investment recommendations is widespread.

Druh

D - Stať ve sborníku

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

<a href="/cs/project/GAP403%2F11%2F0020" target="_blank" >GAP403/11/0020: Dynamika informačních toků a přenos volatility na finančních trzích</a><br>

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2012

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of 30th International Conference Mathematical Methods in Economics

ISBN

978-80-7248-779-0

ISSN

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e-ISSN

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Počet stran výsledku

5

Strana od-do

255-259

Název nakladatele

Silesian University in Opava, School of Business Administration in Karviná

Místo vydání

Karviná

Místo konání akce

Karviná

Datum konání akce

11. 9. 2012

Typ akce podle státní příslušnosti

CST - Celostátní akce

Kód UT WoS článku

000316715900044