Bridge over ocean
1 July 2010 Financial Analysts Journal Volume 66, Issue 4

Conflicts of Interest and Analyst Behavior: Evidence from Recent Changes in Regulation

  1. Armen Hovakimian
  2. Ekkachai Saenyasiri

Regulation FD made analysts less dependent on insider information and diminished analysts’ motives to inflate their forecasts. The Global Research Analyst Settlement had an even bigger impact on analyst behavior: The mean forecast bias declined significantly, whereas the median forecast bias essentially disappeared. These results are similar for all analysts.

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