Does Analyst Coverage Affect Workplace Safety?
AFA 2019 Atlanta Meetings Paper; Forthcoming, Management Science
Posted: 20 Jan 2019 Last revised: 13 Jul 2022
Date Written: January 11, 2019
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.
Keywords: workplace safety, employee welfare, analyst coverage, analyst monitoring
JEL Classification: G24, G30, J28, K32
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