The interaction between the various departments of a full-service brokerage firm can have positive effects. An asset management department operates the firm's mutual funds and has a need for high-quality information. Thus, the firm's sell-side analysts in the research department are motivated to...

This paper documents that informativeness of reported earnings, measured by earnings–return relation, is an increasing function of dividend payout ratio in the Middle East and North Africa region during the period between 2003 and 2014. We argue that higher dividends reduce agency conflicts....

In this paper, we investigate the dysfunctional incentives of security analysts and how they affect analysts’ earnings forecasts and investment recommendations. We argue that these incentives motivate analysts to issue overly optimistic earnings forecasts and investment recommendations and...

This article documents the earnings response coefficient (ERC) for nonfinancial firms listed in the Middle East and North Africa region during the period between 2003 and 2013. Our results show significantly positive ERC for our sample firms. The results are robust across different countries and...

This study examines the relation between changes in portfolio composition of brokerage-owned mutual funds and earnings forecasts of sell-side analysts employed by the same firm. We find that these analysts are consistently optimistic for securities that represent new investments for their mutual...