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%2F13%3A00392174" target="_blank" >RIV/00216208:11640/13:00392174 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.1016/j.irfa.2013.02.015" target="_blank" >http://dx.doi.org/10.1016/j.irfa.2013.02.015</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.irfa.2013.02.015" target="_blank" >10.1016/j.irfa.2013.02.015</a>

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 analysison brokers 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 ofone's own investment recommendation. In the model we control for brokers' responses to other investment advices 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 analysison brokers 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 ofone's own investment recommendation. In the model we control for brokers' responses to other investment advices 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

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

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

2013

Kód důvěrnosti údajů

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

Název periodika

International Review of Financial Analysis

ISSN

1057-5219

e-ISSN

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Svazek periodika

28

Číslo periodika v rámci svazku

June

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

7

Strana od-do

86-92

Kód UT WoS článku

000320687200009

EID výsledku v databázi Scopus

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