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How Does Analyst Coverage Affect Corporate Social Responsibility? Evidence from China

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  • Zheng Lei
  • Guo Xuemeng
  • Fu Xiangfei

Abstract

Using archival data of Chinese A-share listed companies from 2009 to 2018, this article examines the influence of analyst coverage on corporate social responsibility (hereinafter refer as CSR) performance. Main results suggest that sell-side analysts can significantly promote Chinese listed companies’ CSR activities. Several robustness tests are employed and proved the solidity of main conclusions. Mechanism tests show that the investor recognition channel plays a dominant role in explaining the positive effect of analyst coverage. Additional analysis further illustrates that stock exchanges’ regulatory practices concerning firms’ CSR activities can strengthen the investor recognition channel.

Suggested Citation

  • Zheng Lei & Guo Xuemeng & Fu Xiangfei, 2022. "How Does Analyst Coverage Affect Corporate Social Responsibility? Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(7), pages 2036-2049, May.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:7:p:2036-2049
    DOI: 10.1080/1540496X.2021.1952071
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