Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 26, 2013 erstellt
Description:
This paper examines the influence of institutional factors on the herding behavior of security analysts. Exploiting a unique dataset on the ownership of brokerage houses, we find that analysts from publicly listed brokers are more likely to issue herding forecasts compared to analysts from privately held brokers. We show that this effect is driven by the group of analysts covering financial sector stocks. In particular, the probability of issuing a herding forecast revision is 4% higher (average marginal effect) for financial sector analysts from public brokers compared to financial sector analysts from private brokers. We interpret this finding as evidence that financial sector analysts from public brokers are less independent, as their forecasts exert an externality on their broker's stock valuation