NDLI: No conflict, no interest: on the economics of conflicts of interest faced by analysts

Content Provider	Springer Nature Link
Author	Forbes, William
Copyright Year	2011
Abstract	This paper outlines evolution of the policy response to conflicts of interest analysts face in offering investment advice to investors when the company they follow may also buy merchant banking services from their employer. Both in the US and the UK on a both statutory and common law basis the response has been one of to disclose and let market participants price the implied conflict or simply rebut the advice given. An efficient market can price conflicts and by implication unravel any potential damage to shareholder wealth induced by analysts’ conflicts of interests in this view. I consider the impact the presence of “noise traders” in financial markets may have on the welfare implications of this sort of policy stance. The presence of noise traders casts doubt on the benign impact of conflicts of interest in financial markets. In particular the presence of noise induced variance in analyst’s forecasts implies disclosure based remedies may be ineffective in mitigating the harm of analyst’s conflicts of interest.
Starting Page	327
Ending Page	348
Page Count	22
File Format	PDF
ISSN	09291261
Journal	European Journal of Law and Economics
Volume Number	35
Issue Number	3
e-ISSN	15729990
Language	English
Publisher	Springer US
Publisher Date	2011-11-20
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Conflicts of interest Analysts Market abuse directive Law and Economics European Integration Public Finance & Economics Commercial Law
Content Type	Text
Resource Type	Article
Subject	Business and International Management Law Economics and Econometrics

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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