We investigate directly whether analyst behavior influenced the likelihood of banks winning underwriting mandates for a sample of 16,456 U.S. debt and equity offerings sold between December 1993 and June 2002.(...)

We show that relatively optimistic research and even the mere provision of research coverage for the issuer (regardless of its direction) attract co-management appointments for securities offerings. Co-management appointments are valuable because they help banks establish relationships with...

We investigate why banks pressured research analysts to provide aggressive assessments ofissuing firms during the 1990s. This competitive strategy did little to directly increase a bank s chances of winning lead-management mandates and ultimately led to regulatory penalties and costly structural...