Financial Times FT.com

US executives find favours to analysts can secure better ratings

By Francesco Guerrera and David Wighton in New York

Published: July 27 2007 03:00 | Last updated: July 27 2007 03:00

US executives have been able to secure more favourable research ratings for their companies from investment banks by bestowing professional favours on Wall Street analysts, according to research to be published today.

The study found that by offering analysts favours, ranging from recommending them for a job to agreeing to speak to their clients, executives sharply reduced the chances of a downgrade in the aftermath of poor results or a controversial deal.

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