Number: RL31348
Title: Enron and Stock Analyst Objectivity
Authors: Gary W. Shorter, Government and Finance Division 
Abstract: The performance of the stock analysts in the Enron case has rekindled interest in the issue of analysts objectivity, a subject that had received recent attention in SEC studies and investor warnings and congressional hearings. The fundamental concern is that sell-side analysts have had their independence compromised as they have become closer to their firms' investment banking arms. Indications are that analysts employed by firms with investment banking ties to Enron seemed even less inclined than other analysts to issue sell recommendations on its stock.
Pages: 38
Date: Updated January 6, 2003