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

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.

• Publication year

  2021

• Venue

  Global Finance Journal

• Publication date

  2021-11-01

• Fields of study

  Business, Economics

• Identifiers
  DOI 10.1016/j.gfj.2021.100671
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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