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Criticism about the quality and independence of research in general has been mounting since the plunge of the technology stock sector last year.
Brokerage firm executives who sell shares in companies their analysts recommend buying often argue that their sales are evidence of the independence of research departments.
Within forty-eight hours, ten of Wall Street's biggest banks had agreed to the regulators' terms, which included a series of reforms designed to insure the independence of research analysts, a ban on issuing I.P.O. stocks to corporate executives, and fines totalling $1.4 billion.
There is evidence that this has occurred in the past, sometimes in subtle and uncontrollable ways.And now, a word from our sponsorsIf hiring and firing decisions appear to turn on the interests of sponsors, for example, the independence of research may suffer.
"CLSA had procedures in place to protect the independence of research many years before Eliot Spitzer forced Wall Street to change its behavior," he says.
Osman and El Nolla (2009) identify 10 different factors affecting autonomy ranging from funding modalities, managerial control over issues such as recruitment, the research agenda-setting process, quality assurance mechanisms and the existence of 'advisory firewalls' such as technical advisory bodies that can help protect the integrity and independence of research conducted.
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Differences in mean SCS scores were tested using random intercept linear models to account for the non-independence of research participants nested within clinical units.
The members of the committee are drawn externally from outside the institutions that the research team currently work to ensure its independence of the research team.
A researcher may be reluctant to present his research to a policy maker due to fear of sacrificing the independence of the research, or due to lack of appropriately trained policy makers using evidence in the first place [ 20, 21].
"We believe this new policy will further demonstrate our ongoing commitment to support the integrity and independence of our research to all investors," said Al Jackson, the firm's global head of equity research.
Bank of America values the independence of its research and has a longstanding practice of protecting that independence".
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