A survey of managerial incentives and investment bias - common structure but differing assumptions

Article Abstract:

There is a growing concern that stock markets and internal capital markets are responsible for the short-sightedness of investment managers during the past decades. A study was conducted on investment bias which concludes that it has reached a certain level of maturity and is wide-ranging. The development of models and perspectives pertaining directly to economic fundamentals is suggested rather than the pursuit of other variations of particular assumptions.

Practice

---

Analysts' forecasts and the broker relationship

Article Abstract:

When investment analysts work closely with a brokerage firm, the situation creates an agency relationship with a potential conflict of interest. Research finds, however, that the agency relationship does not improve forecast accuracy, but does result in more optimistic forecasts.

Securities Dealers, Statistical Data Included, Financial services industry, Financial services, Securities industry, Ethical aspects

---

Acquisition premiums when investment banks invest their own money in the deals they advise and when they do not: Evidence from acquisitions of assets in the UK

Article Abstract:

Investors pay the lowest premiums when investing in the same investments as banks that advise them. Independent investments are in the middle, and advised but not invested investment have the highest premiums.

United Kingdom, Investment Banking, Financial management, Science & research, Investment banks, Company investment

Similar abstracts:

• Abstracts: The effect of tax accounting rules on capital structure and discretionary accruals
• Abstracts: The co-evolution of capabilities and transaction costs: Explaining the institutional structure of production. The satisficing principle in capability learning
• Abstracts: Reflecting the desires of management. A toast to competition
• Abstracts: An Austrian timber firm invests considerably. Investments in wood-working plants. The revenues of wood-working plants
• Abstracts: The housing value-relevance of governmental accounting information. Relative value relevance of historical cost vs. fair value: Evidence from bank holding companies

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.