Getting Attention Through Corporate Philanthropy |
| |
Authors: | Yunhao Dai Dongmin Kong |
| |
Affiliation: | 1. Department of Finance, School of Economics, Huazhong University of Science and Technology, Wuhan, China;2. School of Finance, Zhongnan University of Economics and Law, Wuhan, China |
| |
Abstract: | This study investigates whether firm donations will attract attention for firms without analyst coverage. We find that: (1) the donations from firms without analyst coverage attract more attention from analysts, (2) donations from firms without analyst coverage improve stock liquidity and institutional holdings at least in the short run, and (3) donations from firms without analyst coverage are positively and significantly related to the future performance of firms compared with those from firms covered by analysts. This study contributes to the understanding of the influence of analysts on firms and the strategic motivations of corporate philanthropy. |
| |
Keywords: | analyst coverage catastrophic event corporate philanthropy |
|
|