The Effects of Corporate Governance on Underwriters’ Recommendations

• Main Authors: Chen, Chun-Yu, 陳俊佑
• Other Authors: Vivian W. Tai
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/10100113738953808163

碩士 === 國立暨南國際大學 === 財務金融學系 === 96 === Following the previous findings of underwriters’ recommendation upward biases, we apply the feature of transparency improvement by corporate governance on conflict of interest of underwriter analysts. Through examining the effects of corporate governance on underwriter’s recommendation biases and information value, we find better corporate governance recommended firms in ownership structure, board characteristics, or financial information transparency will receive less upward biased recommendation rating than inferior corporate governance ones. Additionally, the amending recommendation rating provided by underwriters release more information value than those manipulated affiliated recommendations. Our finding supports that corporate governance enhances the transmission in information accuracy and efficiency.