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Analyst coverage and corporate social responsibility decoupling: Evidence from China

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  • Yi Zhang

Abstract

This study investigates the impact of analyst coverage on corporate social responsibility (CSR) decoupling using a sample of listed firms in China for 2010–2019. Results reveal that analyst coverage decreases CSR decoupling, and that the negative association is more pronounced for non‐state‐owned firms and for firms with high information asymmetry. The baseline results remain consistent after application of several robustness and endogeneity tests, including two‐stage least squares (2SLS) and Heckman two‐stage analysis. The results extend the literature on analyst coverage and scarce studies on determinants of CSR decoupling. Practitioners may alleviate CSR decoupling by properly using the monitoring role of financial analysts in corporate governance.

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  • Yi Zhang, 2022. "Analyst coverage and corporate social responsibility decoupling: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 620-634, May.
    • Handle: RePEc:wly:corsem:v:29:y:2022:i:3:p:620-634
    DOI: 10.1002/csr.2224
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    3. Chen, Lifeng & Khurram, Muhammad Usman & Gao, Yuying & Abedin, Mohammad Zoynul & Lucey, Brian, 2023. "ESG disclosure and technological innovation capabilities of the Chinese listed companies," Research in International Business and Finance, Elsevier, vol. 65(C).
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    5. Patrick Velte, 2023. "Determinants and consequences of corporate social responsibility decoupling—Status quo and limitations of recent empirical quantitative research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2695-2717, November.

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