Corporate Culture and Employee Behavior: Evidence from Financial Analysts in Rating Agencies
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| Tuesday, July 2, 2024 |
| 9:50 AM - 10:05 AM |
Presenter
Dr Jin Zhang
Senior Lecturer
Monash University
Corporate Culture and Employee Behavior: Evidence from Financial Analysts in Rating Agencies
Abstract
Credit rating agencies, such as Standard and Poors (S&P), have a prevailing conservative corporate culture shaped by regulatory and market demand. The conservative corporate culture could lead to the conservative behavior of other employees of rating agencies, including equity analysts who are independent from the credit research teams. Consistent with this prediction, we find that equity analysts of S&P issue significantly fewer buy recommendations and more sell recommendations than analysts in other equity research firms. S&P equity analysts are more likely to issue sell recommendations or downgrade their recommendations when there is negative information in the market. The conservatism in S&P analysts stock recommendations cannot be explained by the absence of conflicts of interest or information spill-over within S&P. Finally, we show that S&P analysts recommendations receive stronger market reactions.
Biography
Jin Zhang is a Senior Lecturer in the Department of Accounting at Monash University. She joined Monash University in January 2018, after graduating from Nanyang Technological University in Singapore. Her papers have been published by Review of Accounting Studies, Journal of Financial and Quantitative Analysis, Journal of Business Finance & Accounting, European Accounting Review, and RAND Journal of Economics. She serves as an ad-hoc reviewer for Journal of Financial and Quantitative Analysis, Management Science, Review of Accounting Studies, British Accounting Review, Entrepreneurship Theory and Practice, European Accounting Review, Journal of Corporate Finance, Journal of Banking and Finance, Journal of Business Finance & Accounting, Accounting and Finance, Accounting Horizons, Advances in Accounting, China Accounting and Finance Review, Corporate Governance: An International Review, Economic Modelling, Global Finance Journal, Journal of Accounting and Public Policy, Journal of Business Ethics, Journal of International Financial Markets, Institutions and Money, R&D Management, Applied Economics Letters, Pacific Accounting Review, Journal of Financial Studies, Economic Research Journal
Chair
Zhongtian Li
Senior Lecturer
The University Of Newcastle, Australia
