We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Speed of Information and the Sell-Side Research Industry.
- Authors
Bradley, Daniel; Clarke, Jonathan; Zeng, Linghang
- Abstract
Between 2009 and 2013, the Fly on the Wall (FLY) leaked 58% of recommendation revisions with a median delay of 27 minutes relative to the IBES announcement time. We show that FLY improves price discovery, but leaked recommendations hamper brokers' ability to offer price improvement on trades routed through them. Three major brokers sued FLY; using key court dates, we show significant wealth and real effects to the brokerage industry. Overall, the speed with which analyst recommendations are disseminated has led to more rapid price discovery at the expense of a decline in the scope of the sell-side research industry.
- Subjects
LEAKS (Disclosure of information); PRICES; STOCKBROKERS; SECURITIES analysts; SPECULATION; RESEARCH
- Publication
Journal of Financial & Quantitative Analysis, 2020, Vol 55, Issue 5, p1467
- ISSN
0022-1090
- Publication type
Article
- DOI
10.1017/S0022109019000577