Does Analyst Coverage Affect Workplace Safety?

AFA 2019 Atlanta Meetings Paper; Forthcoming, Management Science

Posted: 20 Jan 2019 Last revised: 13 Jul 2022

See all articles by Daniel Bradley

Daniel Bradley

University of South Florida

Connie X. Mao

Temple University - Fox School of Business and Management

Chi Zhang

University of Massachusetts Lowell

Date Written: January 11, 2019

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.

Keywords: workplace safety, employee welfare, analyst coverage, analyst monitoring

JEL Classification: G24, G30, J28, K32

Suggested Citation

Bradley, Daniel and Mao, Connie X. and Zhang, Chi, Does Analyst Coverage Affect Workplace Safety? (January 11, 2019). AFA 2019 Atlanta Meetings Paper; Forthcoming, Management Science, Available at SSRN: https://ssrn.com/abstract=3313851

Daniel Bradley

University of South Florida ( email )

Tampa, FL 33620
United States

Connie X. Mao

Temple University - Fox School of Business and Management ( email )

416 Alter Hall
Philadelphia, PA 19122
United States
215-204-4895 (Phone)
215-204-1697 (Fax)

Chi Zhang (Contact Author)

University of Massachusetts Lowell ( email )

Pulichino Tong Building
Manning School of Business
Lowell, MA 01854
United States

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