Research Summary

Wall Street Research

by Paul M. Healy


Wall Street research helps to support a well-functioning capital market by providing investors with information about investment opportunities, and corporate issuers with liquidity for their stocks. Yet surprisingly little is known about how Wall Street research actually works. Academic research has focused on analysts' earnings forecasts and stock recommendations, although investors appear to put little stock in this summary data. Regulators have focused on concerns about analysts' conflicts of interest that diminish the quality and integrity of analyst research. My research provides greater insights into how analysts perform their role as information intermediaries, how they are managed and rewarded, and how they really perform.

Keywords: sell-side analysts; brokerage; investment banking; buy-side analysts; compensation; Financial Services Industry;