Do Corporate Governance Analysts Matter? Evidence from the Expansion of Governance Analyst Coverage

Nico Lehmann*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

7 Citations (Scopus)

Abstract

This paper examines the economic consequences of the initiation of governance analyst coverage. Governance analysts process, enhance, and disseminate governance-related information to capital market participants via, for example, governance reports and ratings. Using an exogenous shock in the United Kingdom, I find that an increase in governance analyst coverage results in increased governance quality, improved liquidity, increased financial analyst following, and improved investor breadth. These findings are consistent with governance analysts creating value for firms via monitoring, information dissemination/production, and investor recognition.

Original languageEnglish
Pages (from-to)721-761
Number of pages41
JournalJournal of Accounting Research
Volume57
Issue number3
DOIs
Publication statusPublished - Jun 2019

Bibliographical note

Publisher Copyright:
© University of Chicago on behalf of the Accounting Research Center, 2018

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