애널리스트의 이해상충에 관한 연구 = A study on Analysts` Conflict of Interests

다국어 초록 (Multilingual Abstract)

This study investigates the possibility that financial analysts of security firms that provide underwriting services to a company are more optimistic than other analysts, due to their economic bond. Our sample consists of KSE and KOSDAQ firms that issued seasoned equity offerings during the period of 2000 to 2002, and those followed by the financial analysts from 2001 to 2003. Using the matching sample test, we find that earning forecasts made by an underwriting firm`s analysts are significantly more optimistic than those made by other analysts. But, the recommendations made by both underwriting and other analysts are not significantly different. From the results of multiple regressions, we find that the higher the reputations of underwriting firm, the lower the possibility of being optimistic is. In addition, the level of optimism is positively related with the SEO firm size and whether it was included in the top 30 groups called the ``Chaebol`` in Korea. Our findings suggest that regulators enforce more rigorous regulations to prevent the underwriting analysts` relative optimism that are caused by conflicts of interest. In other words, a ``fire-wall`` should be constructed between the underwriting business department and research department.

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