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| Author: | Brennan, M.J. Hughes, P.J. |
| Title: | Stock prices and the supply of information |
| Journal: | Journal of Finance
1991 : DEC, VOL. 46:5, p. 1665-1691 |
| Index terms: | SHARE PRICES MONEY BROKERS INFORMATION |
| Language: | eng |
| Abstract: | A model is developed in which the dependence of the brokerage commission rate on share price provides an incentive for brokers to produce research reports on firms with low share prices. Stock splits therefore affect the attention paid to a firm by investment analysts. Managers with favourable private information about their firms have an incentive to split their firm's shows in order to reveal the information to investors. Empirical evidence was found, that the number of analysts following a firm is inversely related to its share price. |
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