IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0302165.html
   My bibliography  Save this article

How does analyst coverage influence corporate social responsibility (CSR)? The governance- and information-based perspectives

Author

Listed:
  • Yan Liu
  • Xiuhong Du

Abstract

Based on a sample of Chinese public manufacturing firms, this study empirically investigates whether and how analyst coverage drives corporate social responsibility (CSR) under different governance or information conditions. The results show that firms with greater analyst coverage take more social responsibility, representing magnified concerns and better CSR visibility for legitimacy and reputation. This relationship could be strengthened under high governance condition (high institutional ownership ratio, none CEO duality, low executive ownership) or low information situation (high earnings management and low accounting conservatism). These findings provide new evidence of information-based mechanism underlying the promotions of CSR in imperfect information environments.

Suggested Citation

  • Yan Liu & Xiuhong Du, 2024. "How does analyst coverage influence corporate social responsibility (CSR)? The governance- and information-based perspectives," PLOS ONE, Public Library of Science, vol. 19(4), pages 1-24, April.
    • Handle: RePEc:plo:pone00:0302165
    DOI: 10.1371/journal.pone.0302165
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0302165
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0302165&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0302165?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chen, Tao & Dong, Hui & Lin, Chen, 2020. "Institutional shareholders and corporate social responsibility," Journal of Financial Economics, Elsevier, vol. 135(2), pages 483-504.
    2. Yang Liu & Rana Tahir Naveed & Sara Kanwal & Muhammad Tahir Khan & Ali F Dalain & Wei Lan, 2023. "Psychology in action: Social media communication, CSR, and consumer behavior management in banking," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-23, August.
    3. Xueming Luo & Heli Wang & Sascha Raithel & Qinqin Zheng, 2015. "Corporate social performance, analyst stock recommendations, and firm future returns," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 123-136, January.
    4. Kun Su, 2019. "Does religion benefit corporate social responsibility (CSR)? Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1206-1221, November.
    5. Lu Chen & Ming Yuan & Han Lin & Yilong Han & Youyou Yu & Caihui Sun, 2023. "Organizational improvisation and corporate green innovation: A dynamic capability perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5686-5701, December.
    6. Lei Lei & Di Zheng & XuDong Chen, 2022. "Corporate social responsibility and corporate financialization—Based on information effect and reputation insurance effect," PLOS ONE, Public Library of Science, vol. 17(7), pages 1-18, July.
    7. Yuming Zhai & Zhenghuan Cai & Han Lin & Ming Yuan & Ye Mao & Mingchuan Yu, 2022. "Does better environmental, social, and governance induce better corporate green innovation: The mediating role of financing constraints," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1513-1526, September.
    8. Rui Albuquerque & Yrjö Koskinen & Chendi Zhang, 2019. "Corporate Social Responsibility and Firm Risk: Theory and Empirical Evidence," Management Science, INFORMS, vol. 65(10), pages 4451-4469, October.
    9. Kolk, Ans & van Tulder, Rob, 2010. "International business, corporate social responsibility and sustainable development," International Business Review, Elsevier, vol. 19(2), pages 119-125, April.
    10. Anne-Kathrin Hinze & Franziska Sump, 2019. "Corporate social responsibility and financial analysts: a review of the literature," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 10(1), pages 183-207, February.
    11. Mark H. Lang & Karl V. Lins & Darius P. Miller, 2004. "Concentrated Control, Analyst Following, and Valuation: Do Analysts Matter Most When Investors Are Protected Least?," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 589-623, June.
    12. Lin, Han & Chen, Lu & Yu, Mingchuan & Li, Chao & Lampel, Joseph & Jiang, Wan, 2021. "Too little or too much of good things? The horizontal S-curve hypothesis of green business strategy on firm performance," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    13. Arifur Khan & Mohammad Muttakin & Javed Siddiqui, 2013. "Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy," Journal of Business Ethics, Springer, vol. 114(2), pages 207-223, May.
    14. Khan, Mozaffar & Watts, Ross L., 2009. "Estimation and empirical properties of a firm-year measure of accounting conservatism," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 132-150, December.
    15. Syeda Khiraza Naqvi & Faisal Shahzad & Ijaz Ur Rehman & Fiza Qureshi & Usama Laique, 2021. "Corporate social responsibility performance and information asymmetry: The moderating role of analyst coverage," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1549-1563, November.
    16. Ijaz Ur Rehman & Syeda Khiraza Naqvi & Faisal Shahzad & Ahmed Jamil, 2021. "Corporate social responsibility performance and information asymmetry: the moderating role of ownership concentration," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 18(2), pages 424-440, May.
    17. Anne-Kathrin Hinze & Franziska Sump, 2019. "Corporate social responsibility and financial analysts: a review of the literature," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 10(1), pages 183-207, February.
    18. Ioannis Ioannou & George Serafeim, 2015. "The impact of corporate social responsibility on investment recommendations: Analysts' perceptions and shifting institutional logics," Strategic Management Journal, Wiley Blackwell, vol. 36(7), pages 1053-1081, July.
    19. Yu, Fang (Frank), 2008. "Analyst coverage and earnings management," Journal of Financial Economics, Elsevier, vol. 88(2), pages 245-271, May.
    20. Young K. Kwon, 2005. "Accounting Conservatism and Managerial Incentives," Management Science, INFORMS, vol. 51(11), pages 1626-1632, November.
    21. Mohammad Badrul Muttakin & Arifur Khan & Dessalegn Getie Mihret, 2018. "The Effect of Board Capital and CEO Power on Corporate Social Responsibility Disclosures," Journal of Business Ethics, Springer, vol. 150(1), pages 41-56, June.
    22. Meini Han & Han Lin & Jiangyan Wang & Yunzhen Wang & Wan Jiang, 2019. "Turning corporate environmental ethics into firm performance: The role of green marketing programs," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 929-938, September.
    23. Zhang, Min & Tong, Lijing & Su, Jun & Cui, Zhipeng, 2015. "Analyst coverage and corporate social performance: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 32(C), pages 76-94.
    24. Hu, May & Xiong, Wanfang & Xu, Cheng, 2021. "Analyst coverage, corporate social responsibility, and firm value: Evidence from China," Global Finance Journal, Elsevier, vol. 50(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Lewis, 2024. "Analyst monitoring and information asymmetry reduction: U.S. evidence on environmental investment," Innovation and Green Development, Elsevier, vol. 3(1).
    2. Roger, Tristan, 2024. "Do financial analysts care about ESG ?," Finance Research Letters, Elsevier, vol. 63(C).
    3. 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.
    4. Bolognesi, Enrica & Burchi, Alberto, 2023. "The impact of the ESG disclosure on sell-side analysts’ target prices: The new era post Paris agreements," Research in International Business and Finance, Elsevier, vol. 64(C).
    5. Wang, Yuxi & Hu, Fangjia & Wang, Yunyun, 2024. "Analyst coverage and greenwashing: Evidence from Chinese A-Share listed corporations," International Review of Economics & Finance, Elsevier, vol. 94(C).
    6. McGuinness, Paul B. & Vieito, João Paulo & Wang, Mingzhu, 2024. "The impact of CSR-engagement, board gender, and stock price synchronicity on female analyst stock coverage decisions," Journal of Financial Stability, Elsevier, vol. 75(C).
    7. Isabel María García‐Sánchez & María‐Elena Gómez‐Miranda & Fátima David & Lazaro Rodríguez‐Ariza, 2019. "Analyst coverage and forecast accuracy when CSR reports improve stakeholder engagement: The Global Reporting Initiative‐International Finance Corporation disclosure strategy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1392-1406, November.
    8. Xudong Zhuang & Xi Lin, 2023. "Invisible governance: Cognitive ability and corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4466-4481, December.
    9. Ameen Qasem & Shaker Dahan AL-Duais & Wan Nordin Wan-Hussin & Hasan Mohamad Bamahros & Abdulsalam Alquhaif & Murad Thomran, 2022. "Institutional Ownership Types and ESG Reporting: The Case of Saudi Listed Firms," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    10. He, Feng & Guo, Xinyao & Yue, Pengpeng, 2024. "Media coverage and corporate ESG performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    11. Stephen J. Smulowitz & Didier Cossin & Hongze Lu, 2023. "Managerial Short-Termism and Corporate Social Performance: The Moderating Role of External Monitoring," Journal of Business Ethics, Springer, vol. 188(4), pages 759-778, December.
    12. Anagnostopoulou, Seraina C. & Tsekrekos, Andrianos E. & Voulgaris, Georgios, 2021. "Accounting conservatism and corporate social responsibility," The British Accounting Review, Elsevier, vol. 53(4).
    13. Chen, Changling & Kim, Jeong-Bon & Yao, Li, 2017. "Earnings smoothing: Does it exacerbate or constrain stock price crash risk?," Journal of Corporate Finance, Elsevier, vol. 42(C), pages 36-54.
    14. Syeda Khiraza Naqvi & Faisal Shahzad & Ijaz Ur Rehman & Fiza Qureshi & Usama Laique, 2021. "Corporate social responsibility performance and information asymmetry: The moderating role of analyst coverage," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1549-1563, November.
    15. Zhou, Lei & Wei, Feng, 2024. "Employee stock ownership plans and controlling shareholders’ over-appointing of directors," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1747-1770.
    16. Marshall, Andrew & Rao, Sandeep & Roy, Partha P. & Thapa, Chandra, 2022. "Mandatory corporate social responsibility and foreign institutional investor preferences," Journal of Corporate Finance, Elsevier, vol. 76(C).
    17. Barros, Victor & Verga Matos, Pedro & Miranda Sarmento, Joaquim & Rino Vieira, Pedro, 2023. "High-tech firms: Dividend policy in a context of sustainability and technological change," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    18. Yingxue Gao & Yan Chen, 2024. "Watchdogs or Enablers? Analyzing the Role of Analysts in ESG Greenwashing in China," Sustainability, MDPI, vol. 16(11), pages 1-28, May.
    19. Bilyay-Erdogan, Seda & Danisman, Gamze Ozturk & Demir, Ender, 2024. "ESG performance and investment efficiency: The impact of information asymmetry," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    20. Zhao, Panting & Yao, Xin & Shen, Rui, 2024. "Capital market internationalization and firms' ESG performance: Evidence from the inclusion of China A-shares in the MSCI Emerging Market Index," Energy Economics, Elsevier, vol. 133(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0302165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.