Analyst coverage, corporate social responsibility, and firm value: Evidence from China

May Hu, Wanfang Xiong and Cheng Xu

Global Finance Journal, 2021, vol. 50, issue C

Abstract: This paper examines how analyst coverage affects firms' engagement in corporate social responsibility (CSR). Using data on Chinese listed companies from 2010 to 2017, we find that (1) analyst coverage significantly enhances CSR engagement; (2) ownership structure, political connection, corporate governance, and media coverage moderate that association; (3) a plausible mechanism is that analyst coverage increases CSR by increasing site visits from institutional investors and improving firms' internal controls. In addition, the interaction between analyst coverage and CSR engagement has an economically sizeable incremental effect on firm value. Overall, our findings indicate that financial analysts play a critical external monitoring and informational role for organizations.

Keywords: Analyst coverage; Corporate social responsibility; Firm value (search for similar items in EconPapers)
JEL-codes: G30 M14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:50:y:2021:i:c:s1044028321000697

DOI: 10.1016/j.gfj.2021.100671

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