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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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    Cited by:

    1. 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.

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