| Author: | Lin, H. McNichols, M. |
| Title: | Underwriting relationships, analysts' earnings forecasts and investment recommendations |
| Journal: | Journal of Accounting & Economics
1998 : FEB, VOL. 25:1, p. 101-128 |
| Index terms: | INVESTMENT FORECASTING EARNINGS |
| Language: | eng |
| Abstract: | The authors examine the effect of underwriting relationships on analysts' earnings forecasts and recommendations. Lead and co-underwriter analysts' growth forecasts and recommendations are significantly more favorable than those made by unaffiliated analysts, although their earnings forecasts are not generally greater. Investors respond similarly to lead underwriter and unaffiliated "Strong buy" and "Buy" recommendations, but three-day returns to lead underwriter "Hold" recommendations are significantly more negative than those to unaffiliated "Hold" recommendations. |
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