Does Analyst Affiliation Matter? Analyzing Performance of Security Analyst Recommendations Subsequent fPO) Loan Syndication) and MBA Events.
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- Master Thesis 
This thesis examines the differences in the value of analyst consensus recommendations subsequent to IPOs, syndicated loans, and M&A deals depending on their affiliation status. Relying on recommendations issued on U.S. firms between January 2002 and December 2020, we document statistically significant differences between affiliated and non-affiliated analysts subsequent to IPOs and M&A deals. However, subsequent to syndicated loans, we find no statistically significant differences between the analysts. Stocks with the least favorable recommendations from non-affiliated analysts generate a monthly abnormal gross return of -2.665 percent subsequent to IPOs. Contrarily, stocks with the least favorable recommendations from affiliated analysts generate a monthly abnormal gross return of -3.259 percent subsequent to M&A deals. The results suggest that affiliated analysts' subsequent M&A deals possess informational advantages, while subsequent IPOs they reveal a tendency to issue biased recommendations.