dc.description.abstract | 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. | en_US |