Does Analyst Coverage Affect Workplace Safety?

Daniel Bradley (), Connie X. Mao () and Chi Zhang ()
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Daniel Bradley: Department of Finance, University of South Florida, Tampa, Florida 33620
Connie X. Mao: Department of Finance, Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122
Chi Zhang: Department of Finance, Manning School of Business, University of Massachusetts Lowell, Lowell, Massachusetts 01854

Management Science, 2022, vol. 68, issue 5, 3464-3487

Abstract: We find firms’ work-related injury rates are negatively associated with the level of analyst coverage. This result is also robust at the establishment level at which we find local analysts have a more profound impact than distant analysts. Cross-sectionally, our results are exacerbated in firms with weak internal governance mechanisms and in industries with low union representation. Finally, management is more likely to discuss safety issues during earnings conference calls in the presence of more analysts. Overall, our results suggest analysts play an effective external monitoring role and have a subtle yet important impact on employee welfare.

Keywords: workplace safety; employee welfare; analyst coverage; analyst monitoring (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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