Analyst Coverage And Corporate Donation

With the development of the concept of social responsibility,enterprises are becoming more and more demanding for itself and begin to fulfill the social responsibility.As an important way to fulfill social responsibility,corporate donation not only can contribute to society,but also may raise reputation capital which directly brings economic benefits to the company,or reduce reputation loss caused by negative news through the reputation insurance mechanism,which indirectly brings economic benefits to the company.Can the analysts who play the role of information intermediary in the capital market discover the positive or negative information of the enterprise,thus motivating enterprise to choose donations and corporate social responsibility in order to further improve corporate reputation capital or restore reputation loss?Based on the sample of A-share listed companies in China,this paper focuses on the impact of the analyst coverage on the donation of enterprises and finds that the analyst coverage has a positive effect on corporate donation.Furthermore,considering the nature of the property right of enterprises,it is found that,compared with the state-owned enterprises,the effect of analyst coverage in the non-state-owned enterprises is enhanced.The conclusion shows that the information mechanism exists in the analysts,who play an important role in promoting the donation behavior and fulfilling the social responsibility of the enterprises.The research of this paper enriches the studies of corporate social responsibility and analyst coverage,and provides strong empirical evidence for how analyst coverage influences corporate donation.In addition,it puts forward relevant suggestions and points out the shortcomings and research directions of this paper.