Research On The Independence Of Securities Analysts Under The Conflict Of Interest

Securities analysts play a very important role in capital market.They start from the fundamentals of listed companies,analyze all aspects of listed companies,and transmit information to external investors by issuing research reports.Theoretically,securities analysts should maintain an objective and independent attitude to publish research reports,but in reality,analysts have to face conflicts of interest from all sides.Such interest disputes will have an impact on the research reports they issued.With the acceleration of the commission rate of securities business and the decline of investment banking and the introduction of new regulatory rules,the asset management business of brokerages has become an important part of the information management revenue of securities companies.On the other hand,if the broker with strong initiative management ability will occupy the development opportunity,the relationship between the asset management business of the same broker and the securities analyst may also be more closely related,and the independence of the analyst will also be affected.This paper tries to study the conflict of interests among securities analysts from the perspective of asset management business of securities companies,and empirically examines whether analysts will give higher ratings to their own holdings and the more optimistic earnings forecasts.The research results show that analysts will be under pressure from their own securities management departments,which will weaken the independence of analysts to a certain extent.Indeed,affiliated analysts on asset holdings management awkwardness with higher ratings,the profit forecast is more optimistic,association analysts do exist conflicts of interest,ability to predict variation;at the same time,people can not recognize the conflicts of interest in a short time window in the presence of affiliated analysts and independent analysts have a little difference in the rate of return,but with the extension of time span,independent analysts recommended stocks yield significantly higher than analysts association.