Causal Effect of Analyst Following on Corporate Social Responsibility

  title={Causal Effect of Analyst Following on Corporate Social Responsibility},
  author={B. Adhikari},
  journal={CSR & Management Practice eJournal},
  • B. Adhikari
  • Published 2016
  • Economics
  • CSR & Management Practice eJournal
  • I examine the influence of sell-side financial analysts on corporate social responsibility (CSR), and find that firms with greater analyst coverage tend to be less socially responsible. To establish causality, I employ a difference-in-differences (DiD) technique, using brokerage closures and mergers as exogenous shocks to analyst coverage, as well as an instrumental variables approach. Both identification strategies suggest that analyst coverage has a negative causal effect on CSR. My findings… CONTINUE READING

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