François Derrien and his co-author study the extent to which financial analysis impacts a firm’s decisions. They provide empirical evidence revealing a direct link between analyst coverage and the cost of capital, amounts invested, and financing capacity. Contrary to popular belief, it seems that financial analysts do indeed serve a real purpose.
The impact of potential conflicts between shareholders and managers on audit fees has been the (...)
Bernard Madoff used funds provided by new investors to pay some of his clients over many years.* (...)
Credit ratings are increasingly essential investment signals, heavily impacting the cost of capital (...)