Stock recommendation of an analyst who trades on own account
研究自营交易分析师在私下交易时，其报酬方案如何影响信息获取和真实报告激励，发现分析师仅因私人投资组合考虑而获取信息。
This article analyzes the provision of information acquisition and truthful reporting incentives to a financial analyst who can privately trade on own account. In a binary message and state space, I show that the analyst's reward scheme essentially provides him with a portfolio endowment traded in the market. Regardless of the true signal, the analyst issues the report that corresponds to the portfolio endowment with maximum market value, given security prices. The analyst's information acquisition incentive is driven only by private portfolio considerations: he acquires information only if he will be holding a large enough position in the stock he covers.