We test for the causal impact of analyst coverage on corporate risk-taking in the property and casualty insurance sector, using the exogenous change in analyst coverage introduced by broker closures and mergers. We find that a decrease in analyst coverage promotes an increase in insurers’...

This paper examines the effect of active attention from sophisticated market participants on managerial bad news hoarding. Using EDGAR search volume (ESV) as a direct measure, we find that, due to the increased cost of bad news disclosure, firms under greater active attention from sophisticated...

By exploiting the staggered change of legal competition environment in 58 non-US countries, we find that firms tend to inflate their earnings when domicile countries adopt stricter competition laws, which supports the pressure effect of legal competition threats. This result is robust to...

This paper documents a negative effect of institutional cross-blockholding on portfolio firms’ corporate social responsibility (CSR) performance. Our baseline results show that cross-held firms perform worse in CSR than non-cross-held firms do. A quasi-natural experiment based on mergers...