2020
DOI: 10.1111/1467-8454.12203
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Analyst coverage and corporate misconduct

Abstract: This paper examines the causal effects of the coverage by financial analysts of the incidence of corporate misconduct in China. Using a unique dataset consisting of Chinese listed companies that committed misconduct in information disclosure and were consequently fined by the regulatory bodies, we show that firms covered by a larger number of financial analysts are less likely to engage in corporate misconduct. This could be explained by the information production role of analyst, which is especially important… Show more

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Cited by 18 publications
(22 citation statements)
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“…In addition, even if the analysts themselves do not detect firms' misalignment in CSR, such as CSR decoupling, and may not effectively influence firms' CSR decoupling directly, they can influence firms' behaviors by focusing market and public attention on the firms (Yang et al, 2021).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
See 1 more Smart Citation
“…In addition, even if the analysts themselves do not detect firms' misalignment in CSR, such as CSR decoupling, and may not effectively influence firms' CSR decoupling directly, they can influence firms' behaviors by focusing market and public attention on the firms (Yang et al, 2021).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…In addition, even if the analysts themselves do not detect firms' misalignment in CSR, such as CSR decoupling, and may not effectively influence firms' CSR decoupling directly, they can influence firms' behaviors by focusing market and public attention on the firms (Yang et al, 2021). Prior studies find that managers often use CSR reports to create a fantasy sense of their CSR image, which can bring potential benefits such as increased legitimacy and decreased capital costs to firms (e.g., Prior et al, 2008).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…Berdasarkan hasil penelitian dari Sun & Liu (2011), analyst coverage pada model penelitian ini lebih berperan sebagai perantara informasi antara perusahaan dengan shareholders mereka. Penilaian analyst coverage atas kinerja ekonomi perusahaan dianggap mampu merefleksikan kinerja perusahaan mereka (Givoly & Hayn, 2000) dan menjadi objek penilaian dari pelaku pasar saham (Lehmann, 2019;Yang et al, 2021).…”
Section: Pembahasanunclassified
“…As we argue that a critical channel through which common ownership can curb firms' SPCR is by increasing managers' monitoring activities, we further examine whether common ownership constrains managers' opportunistic behaviour and improves firms' information transparency from the perspective of accruals and accounting conservatism. Saci, Jasimuddin, and Hoque (2021) and Yang, Wang, and Xue (2021) suggested that earnings management, which is performed using estimated accruals, is thought to be the most direct and specific type of accounting information distortion/corporate misconduct and bad‐news concealment. We first explore whether firms with common ownership are more inclined to reduce earnings management.…”
Section: Introductionmentioning
confidence: 99%