Suneung without 'killer questions' still not easy, results show
Ex-justice minister's daughter attends forgery trial in college admissions scandal
Teens' excessive smartphone use linked to mental health risk: study
US defense policy bill calls for maintaining 28,500 US troops in Korea
S. Korea determined to become tourism powerhouse
S. Korea logs current account surplus for 6th month in October
4 contentious bills scrapped in revote after Yoon's veto
Footballer Hwang's sister-in-law indicted for disclosing his private videos
Turkish woman gets jail term for killing abusive boyfriend
[Travel Bits] Festivals, sights across Korea
Korea in need of independent securities research body: KIFBy Sohn Ji-young
Published : Feb. 17, 2019 - 16:36
According to a KIF report Sunday, the proportion of “sell” opinions for Korean companies that were adopted by local securities companies between September 2017 to September 2018 stood at a mere 0.1 percent.
During the same period, the proportion of “sell” opinions adopted by foreign securities firms on the same set of Korean companies was 13 percent, indicating a major discrepancy with the opinions of their Korean counterparts.
This was attributed to the tendency of analysts at Korean securities companies to adopt a more optimistic outlook on Korean companies due to an inherent conflict of interest, according to the KIF.
The companies that Korean analysts review are often clients of the securities firms’ own corporate finance services. Moreover, analysts rely on the information provided by the companies in forming their projections, the institute said.
“To resolve this conflict of interests between securities firms and listed companies, Korea should encourage the formation of an independent securities research body (to provide accurate investment guidance to investors),” said KIF research fellow Lee Bo-mi.
By Sohn Ji-young (firstname.lastname@example.org)
S. Korea, US., Japan reaffirm N. Korea's denuclearization obligation
Government asks young couples why they refuse to have children
[Weekender] [K-School] From lobster to rose tteokbokki, Korean school food continues to evolve