Analyst coverage and corporate social performance: Evidence from China

Min Zhang, Lijing Tong, Jun Su and Zhipeng Cui

Pacific-Basin Finance Journal, 2015, vol. 32, issue C, 76-94

Abstract: This paper uses a set of unique data from Chinese listed companies to examine the influence of analyst coverage on corporate philanthropy. Results show that companies followed by more analysts engage in more philanthropy, which provides support for the reputational capital view of corporate philanthropy. The effect of analyst coverage on philanthropy is more pronounced for nonstate-owned enterprises (non-SOEs) than for state-owned enterprises (SOEs). Using the number of analysts following the firm and media coverage as alternative measures, distinguishing star analysts and ordinary analysts and applying the change model and 2SLS model with merge of brokerage houses as the instrumental variable, we confirm the robustness of the conclusions. Our research enriches the literature on corporate social responsibility and analyst coverage.

Keywords: Corporate philanthropy; Analyst coverage; Media coverage; Corporate social responsibility; Star analyst; Merge of brokerage houses (search for similar items in EconPapers)
JEL-codes: G32 M14 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (40)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:32:y:2015:i:c:p:76-94

DOI: 10.1016/j.pacfin.2015.02.005

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