Corporate giants question research independence

EUROPE – Europe's largest corporations are growing increasingly disenchanted with the independence of broker analysts involved in corporate transactions,
according to research by Tempest Consultants as part of the 2001 Reuters survey of larger companies

Comparisons of Tempest’s broker analyst rankings for 2001 with those of the quoted companies showed marked differences, the consultant says.

Consequently, overall aggregate votes for broker analysts fell, heralding the emergence of a small pack headed by Deutsche Bank and six other securities houses.

The survey also shows that fund management groups are shifting their commission allocation away from analyst focused stock research and selling, towards general sales and economic strategy – another clear reversal of previous norms.

Of the 350 larger companies invited, 278 or 91%, with a total equity market value of US$5.3trn, participated in the enquiry.

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