The Impact of Analyst Coverage on Corporate Innovation: A Literature Review
- https://doi.org/10.2991/aebmr.k.220307.400How to use a DOI?
- Analyst coverage; Innovation; Corporate governance
This literature review examines the impact of analyst coverage on corporate innovation. The effect of analyst coverage has been discussed more frequently in recent years with the development of social media. Financial analysts play an essential role as information intermediary agents and monitoring forces, effectively affecting corporate earning management, social responsibility, and equity valuation. Previous studies adopt different approaches, including OLS and 2SLS regression, and conclude the causal relationship between analyst coverage and those factors. Influencing factors on corporate innovation are also evaluated in terms of internal factors such as agency problem, firm structure, tolerance for early failure, as well as external factors including competition, labour laws, bankruptcy codes, hostile takeover, and governance provisions. More importantly, this review summarizes existing literature that investigates the relationship between analyst coverage and corporate innovation. Overall, the relation is discussed from the opposite perspectives. In short, analyst coverage has a “pressure effect” that impedes innovative activities and an “information effect” that fosters innovative actives.
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Zihui Huang PY - 2022 DA - 2022/03/26 TI - The Impact of Analyst Coverage on Corporate Innovation: A Literature Review BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 2443 EP - 2448 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.400 DO - https://doi.org/10.2991/aebmr.k.220307.400 ID - Huang2022 ER -