Finance Professor Wei-Ling Song Co-authored an Article Accepted by Management Science

September 14, 2020

Wei-Ling Song
Wei-Ling Song

BATON ROUGE- Department of Finance professor Wei-Ling Song recently co-authored an article accepted for publication by Management Science.

“Does Reciprocity Affect Analysts’ Incentives to Release Timely Information? Evidence from Syndication Relationships in Securities Underwriting” was co-authored by Song and Connie X. Mao, professor of finance at Temple University’s Fox School of Business.

In this study, the authors examined the effects of reciprocity, which is a subtle but influential factor in maintaining business relationships, on information production by financial analysts. They examined the stock recommendations, earnings forecasts, and target prices issued by “reciprocity-pressured” analysts affiliated with securities underwriters who rely on other major underwriters’ invitations to be in syndicates. Consistent with the reciprocal pressure hypothesis, they found that reciprocity-pressured analysts delay releasing negative information on other major underwriters’ clients even though these analysts’ affiliated underwriters do not receive fees from those clients. They also documented temporary retaliation by major underwriters when reciprocity-pressured analysts deviate from such expected reciprocity. The results suggest that reciprocal pressure in the investment banking industry has a real effect on analyst information dissemination.

The full study is available online here:

Management Science was named a Financial Times 50 journal and a four-star “world elite” journal by the Association of Business Schools (ABS). It is a scholarly journal that publishes scientific research on the practice of management focusing on the problems, interest, and concerns of managers. Within its scope are all aspects of management related to strategy, entrepreneurship, innovation, information technology, and organizations as well as all functional areas of business, such as accounting, finance, marketing, and operations. The journal includes studies on organizational, managerial, and individual decision making, from both normative and descriptive perspectives. Articles are primarily based on the foundational disciplines of economics, mathematics, psychology, sociology, and statistics, but readers will also find cross-functional, multidisciplinary research that reflects the diversity of the management science profession. It also focuses on managerial issues in diverse organizational forms, such as for-profit and nonprofit firms, private and public sector institutions, and formal and informal networks of individuals.

About the Department of Finance

The Department of Finance offers high-quality curricula to undergraduate and graduate students interested in careers in corporate finance, asset management, real estate, insurance, banking, financial planning and business law. The department boasts internationally renowned research faculty in several areas, including derivatives, asset management, banking and spatial econometrics. The department’s Securities Markets Analysis Research & Trading Lab utilizes the Bloomberg Professional service, the platform used by more than 300,000 leading business and financial professionals worldwide to make informed business decisions, and an extensive library of financial databases including the Wharton WRDS System. Additionally, the department encourages, supports and conducts research in real estate by housing the nationally renowned Real Estate Research Institute. For more information, visit or call 225-578-6291.

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Bridget Conrad
E. J. Ourso College of Business