Hong, Harrison; Kacperczyk, Marcin - In: The Quarterly Journal of Economics 125 (2010) 4, pp. 1683-1725
We attempt to measure the effect of competition on bias in the context of analyst earnings forecasts, which are known to be excessively optimistic because of conflicts of interest. Our natural experiment for competition is mergers of brokerage houses, which result in the firing of analysts...