There's significant evidence contradicting this hypothesis. See industry analysts like Gartner, IDC, etc. who all ask tech firms to "pay to play" for better rankings in their reports. As well as the ratings agencies like Moody's, S&P's, and Fitch during the 2008 financial crisis. These ratings agencies were paid by the banks selling CDOs, MBS, and other debt derivatives that were especially tied to the US housing market. The agencies were incentivized to not downgrade those products.https://en.wikipedia.org/wiki/Credit_rating_agencies_and_the...
tristor|6 months ago
Do you have any evidence of this happening? I've been involved on the side of the firm in many of these analyst reports, and I've never seen this happen. What /does/ happen is that to be listed at all, e.g. to have the analyst invest time/resources to review you, you have to pay. They don't exhaustively review every company in the segment or every product in the segment, regardless of size and market position. They only review those who pay to be reviewed or are large enough in market position that they are must-reviews (almost all of which also pay). But I've never seen the rankings/outcome dictated by pay at all. Much to my chagrin sometimes, the analyst will lower your ranking due to something I may have felt was a small issue, but they considered a large issue. Analyst Relations is a major investment area for large tech companies, and given my exposure over the last nearly decade, I've never seen any form of quid pro quo / money changing hands.
root_axis|6 months ago