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Does Analyst Coverage Affect Workplace Safety?

Author

Listed:
  • 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)

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.

Suggested Citation

  • Daniel Bradley & Connie X. Mao & Chi Zhang, 2022. "Does Analyst Coverage Affect Workplace Safety?," Management Science, INFORMS, vol. 68(5), pages 3464-3487, May.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:5:p:3464-3487
    DOI: 10.1287/mnsc.2021.4093
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Ali, Muhammad Jahangir & Azam, Md Saiful & Baghdadi, Ghasan & Hasan, Mostafa Monzur & Puwanenthiren, Premkanth, 2026. "Analyst career concerns and stock price crash risk," International Review of Financial Analysis, Elsevier, vol. 109(C).
    3. Xin Cheng & Orhun Guldiken & Wei Shi, 2023. "Geographic Concentration of Institutional Blockholders and Workplace Safety Violations," Journal of Business Ethics, Springer, vol. 186(3), pages 593-613, September.
    4. Li, Kenuo & Zhang, Lijuan, 2025. "Does share pledging affect workplace safety?," Journal of Corporate Finance, Elsevier, vol. 94(C).
    5. Haoyu Gao & Hui Wang & Xinyu Wang & Huiyu Wen, 2024. "ESG‐oriented analysts and corporate green innovation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(S1), pages 4977-5008, December.
    6. Gao, Jingru & Dong, Yunhe, 2025. "The effect of managerial ability on workplace safety," Finance Research Letters, Elsevier, vol. 85(PB).
    7. Deng, Saiying & Mao, Connie X. & Pu, Xiaoling & Xu, Yuan, 2023. "Import penetration and workplace safety," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 149-161.
    8. Hu, Shiyang & Li, Xiao & Tian, Gary Gang & Zhao, Jianyu, 2024. "From debt breaches to employee safety: The hidden power of banking interventions," The British Accounting Review, Elsevier, vol. 56(6).
    9. Yangyang Chen & Emmanuel Ofosu & Don O’Sullivan & Madhu Veeraraghavan & Leon Zolotoy, 2025. "Rank-and-File Employee Stock Options and Workplace Safety," Management Science, INFORMS, vol. 71(7), pages 5971-5996, July.
    10. Chen, Yangyang & Ofosu, Emmanuel & Veeraraghavan, Madhu & Zolotoy, Leon, 2023. "Does CEO overconfidence affect workplace safety?," Journal of Corporate Finance, Elsevier, vol. 82(C).
    11. Islam, Emdad & Loriot, Blake & Rahman, Lubna, 2025. "The impact of product market competition on workplace safety," Journal of Corporate Finance, Elsevier, vol. 93(C).
    12. Don O’Sullivan & Leon Zolotoy & Madhu Veeraraghavan & Jennifer R. Overbeck, 2025. "Are Employees Safer When the CEO Looks Greedy?," Journal of Business Ethics, Springer, vol. 198(3), pages 655-673, May.
    13. Gong, Ning & Guo, Lixiong & Wang, Zhiyan, 2023. "Shareholder litigation and workplace safety," Journal of Corporate Finance, Elsevier, vol. 82(C).
    14. Liu, Qing & Lu, Ruosi & Teng Sun, Stephen & Zhang, Meng, 2024. "Unintended workplace safety consequences of minimum wages," Journal of Public Economics, Elsevier, vol. 239(C).
    15. Xixiong Xu & Maochuan Wang, 2024. "Confucianism and employee treatment: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2649-2669, July.
    16. Yu, Boqi & Li, Wendi & Li, Qi & Wang, Liangcheng, 2026. "Bright side or dark side? The impact of analyst coverage on corporate sustainable development," Research in International Business and Finance, Elsevier, vol. 84(C).
    17. Zhu, Jialei & Xiong, Zhengde & Lu, Xinxin & Yao, Zhu, 2025. "Does ESG rating disagreement impede corporate green innovation?," Global Finance Journal, Elsevier, vol. 64(C).
    18. Zhang, Tony Xiaochi & Molchanov, Alexander & Nguyen, Harvey & Pham, Mia Hang, 2025. "Leading safely: The impact of generalist CEOs on workplace safety," Journal of Behavioral and Experimental Finance, Elsevier, vol. 46(C).

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