Non‐Deal Roadshows, Informed Trading, and Analyst Conflicts of Interest

Autor:	Russell Jame, Jared Williams, Daniel Bradley
Rok vydání:	2021
Předmět:	Finance Economics and Econometrics Earnings business.industry Order (exchange) Accounting Institutional investor Business
Zdroj:	The Journal of Finance. 77:265-315
ISSN:	1540-6261 0022-1082
DOI:	10.1111/jofi.13089
Popis:	Non-deal roadshows (NDRs) are private meetings between management and institutional investors, typically organized by sell-side analysts. We find that around NDRs, local institutional investors trade heavily and profitably, while retail trading is significantly less informed. Analysts who sponsor NDRs issue significantly more optimistic recommendations and target prices, coupled with more “beatable” earnings forecasts, consistent with analysts issuing strategically biased forecasts in order to win NDR business. Our results suggest that NDRs result in a substantial information advantage for institutional investors and create significant conflicts of interests for the analysts that organize them.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::fb1ec31106bea23a28be6c54011aeb24 https://doi.org/10.1111/jofi.13089 Zobrazit plný text záznamu