Kinesiska muren: Intressekonflikter på den svenska värdepappersmarknaden
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Analysts in an investmentbank’s research department cover both, firms which have no relationship to the investmentbank as well as companies in which the investmentbank has a strategic interest. Officially, banks have to establish a Chinese Wall around the research department to allow the analysts to work independently and to avoid the flow of insider information. The aim of this bachelor thesis is to study whether stock recommendations, issued by the equity research department of investmentbanks, tend to be overly optimistic when the corporate finance department has a strategic interest in the company in question. In addition we have extended the scope of our study by issuing related questions, about the conflict of interest, to market professionals. Our findings confirm a leakage through Chinese Walls. We find evidence of conflicts of interest, resulting in upwards biased reports. In order not to jeopardize the bank-client relationship, they suppress negative information. Our evidence is consistent with allegations that sell-side analysts routinely manipulate their investment advice in response to investment banking pressures in order to temporarily inflate stock prices around initial public offerings.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:su:diva-5144OAI: oai:DiVA.org:su-5144DiVA: diva2:194889