S&P 500 Membership May Be ‘For Sale,’ NBER Research Suggests
- Companies rated by S&P Global seen improving odds of joining
- Index provider says paper is flawed, businesses are separate
Pedestrians pass in front of the New York Stock Exchange (NYSE) in New York, U.S.
Photographer: Griselda San Martin/BloombergThis article is for subscribers only.
A new study has made explosive claims about the world’s largest stock benchmark: Major U.S. corporations that purchase ratings from S&P Global Inc. have a higher chance of entering the S&P 500 Index -- even when they don’t meet all criteria for inclusion.
The non-peer reviewed paper from academics at the Australian National University and Columbia University, published by the National Bureau of Economic Research, suggests companies are seeking to curry favor with the index provider by buying additional services.