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Keywords = group-affiliated analysts

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18 pages, 2190 KiB  
Article
Does Business Group’s Conscious of Social Responsibility Enhance its Investment Efficiency? Evidence from ESG Disclosure of China’s Listed Companies
by Mengdie Hai, Ziwei Fang and Zhaohua Li
Sustainability 2022, 14(8), 4817; https://doi.org/10.3390/su14084817 - 17 Apr 2022
Cited by 20 | Viewed by 4833
Abstract
Business groups are industry exemplars whose investment decisions and social responsibility commitments are important for future sustainable development. We use data from China’s listed firms from 2012 to 2018 to investigate the effects of ESG-related disclosure on corporate investment efficiency by comparing the [...] Read more.
Business groups are industry exemplars whose investment decisions and social responsibility commitments are important for future sustainable development. We use data from China’s listed firms from 2012 to 2018 to investigate the effects of ESG-related disclosure on corporate investment efficiency by comparing the heterogeneity in ESG-related disclosure between group-affiliated firms and standalone firms, as well as between member firms within groups at different pyramid levels. We find that (1) group-affiliated firms are more willing to disclose ESG information than independent ones, and compared with lower-level pyramid member firms, higher-level pyramid member firms have a higher propensity of ESG disclosure; (2) over-investment for group-affiliated firms and under-investment for higher-level pyramid member firms are all moderated by their higher propensity for ESG disclosure. That is, corporate disclosure of ESG information significantly promotes investment efficiency; (3) by grouping the sample firms according to analyst attention and industry external financing dependence, respectively, we find that the promotion effect of ESG disclosure on corporate investment efficiency is more significant when the firms are followed by fewer analysts, or when firms belong to industries with higher external financing dependence. Our findings suggest that ESG disclosure plays an important role in driving a firm’s investment toward desirable levels. Full article
(This article belongs to the Topic Climate Change and Environmental Sustainability)
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19 pages, 290 KiB  
Article
Analyst Following, Group Affiliation, and Labor Investment Efficiency: Evidence from Korea
by Kyoungwon Mo and Kyung Yun (Kailey) Lee
Sustainability 2019, 11(11), 3152; https://doi.org/10.3390/su11113152 - 4 Jun 2019
Cited by 8 | Viewed by 2804
Abstract
This paper studies how analysts’ group affiliation affects firms’ labor investment efficiency. Using a 2001–2017 sample of Korean public companies, we find that labor investment efficiency increases when there are more unaffiliated analysts following business group (chaebol) firms. Our regression results also suggest [...] Read more.
This paper studies how analysts’ group affiliation affects firms’ labor investment efficiency. Using a 2001–2017 sample of Korean public companies, we find that labor investment efficiency increases when there are more unaffiliated analysts following business group (chaebol) firms. Our regression results also suggest that an increase in labor investment efficiency is attributed to a reduction in firms’ over-firing problem. However, affiliated analysts are not found to influence firms’ labor investment efficiency. We further document that the positive influence of unaffiliated analysts on labor investment efficiency holds when firms have high cash holdings. Our results are robust to different model specifications, including two-stage least square regression and firm-size matching. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
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