IDG Contributor Network: The myth of technology analyst independence
Recently passing my 15th anniversary as a technology industry analyst caused me to reflect on the evolution of our business, and I'm disappointed to share that amid some positive developments, one significant ethical shortcoming still persists.If you had asked me 15 years ago—when the world was reeling from an equities collapse aggravated in part by conflict-of-interest shenanigans on Wall Street—I would have predicted that the tech analyst community would split neatly between sell-side research and buy-side research.But that has not happened, and you the customer are the worse off for it.The financial industry analyst model In financial research, the industry makes a clear distinction between sell-side analysis and buy-side analysis. A sell-side financial analyst relies on information often spoon-fed from public companies to drive activity to trading desks (i.e., works primarily on behalf of sellers), while a buy-side specialist strives to inform better investor performance (i.e., works primarily on behalf of buyers). The same advisory or investment firm can employ both buy- and sell-side analysts, but they must isolate themselves behind "Chinese Firewalls" designed to prevent buy- and sell-side specialists from even talking to each other without a lawyer present.To read this article in Continue reading