Financial analysts (sell-side) are crucial to the efficiency of the capital market
finance
Description
Questions Financial analysts (sell-side) are crucial to the efficiency of the capital market through their function as information intermediaries between company managers and investors.1 Although this role requires analysts that are independent of the companies they follow, in the United States, analysts' are incentivised to arrange meetings between top executives of the companies they follow and their private clients investors). In 2016, United States investors paid SUS2 billion in commissions to obtain this access (Ng & Gryta, 2017). You have left university and now work for a large fund manager (buy-side). As a consumer of reports provided by brokerage firms, your employer wants to understand the implications of analyst remuneration practices for the reliability of analyst "buy," "sell," “hold” recommendations. Your research and conclusions will contribute to your employer's overall evaluation of the situation
