The Effect of Bank-firm Relationships on Sell-side Research: Evidence from Financial Deregulation in Japan

摘要: In this paper, I examine how the lending relationships between banks and their borrowers affect quality of analysts’ earnings forecasts after financial deregulation in Japan. My findings show that short-term improve these are useful for predicting future returns. contrast, long-term decay forecast not valuable prediction These empirical results indicate informational advantage commercial acquire is costs surpass benefits long run.