Conflicts of interest in stock recommendations of foreign security firms
| Autor: | Chia-Chien Tsai, 蔡佳蒨 |
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| Rok vydání: | 2013 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 101 Using data from Taiwan stock exchange, this paper studies whether conflicts of interest exist in stock recommendations of foreign institutions, and investigates the responses of stockbrokers to stock recommendations of foreign institutions. It shows that, among 13 foreign institutions, Credit Suisse attained the highest level in the conflict of interest index several times during the study period. On average, the conflict of interest index was relatively high for Morgan Stanley Taiwan, Goldman Sachs, UBS Securities, and JP Morgan Chase; Deutsche Securities Asia had the lowest level. In the survey of stockbrokers’ responses to 30 stock recommendations of foreign institutions, most stockbrokers (about 46% of them) choose “buy” when they see “increasing in earnings per share” in the stock recommendation, and most of them (around 57% of stockbrokers) choose “sell” when they see “worse than the market”. The results suggest that investors should not totally rely on the stock recommendations of foreign institutions, otherwise they would be the source of profits of conflicts of interest of foreign institutions. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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