Title

Analyst forecast quality and corporate social responsibility: The mediation effect of corporate governance

Document Type

Journal Article

Publication Title

Meditari Accountancy Research

Publisher

Emerald

School

School of Business and Law

RAS ID

40648

Comments

Shan, Y. G., Yang, J. W., Zhang, J., & Chang, M. (2022). Analyst forecast quality and corporate social responsibility: The mediation effect of corporate governance. Meditari Accountancy Research. Advance online publication.

https://www.emerald.com/insight/content/doi/10.1108/MEDAR-02-2021-1200/full/html#sec24

Abstract

Purpose:

This study aims to examine the mediating role played by corporate governance (CG) in the relationship between corporate social responsibility (CSR) and analyst forecast quality.

Design/methodology/approach:

The authors raise three specific questions: Does CG play a mediating role in the relationship between CSR and analyst forecast quality? If so, is such mediation effect of CG reduced for firms with weak governance? Do firms with superior CSR performance experience higher analyst forecast quality through the mediation effect of CG?

Findings:

The present results suggest that CG serves as a partial mediator that facilitates CSR’s positive influence on analyst forecast quality. However, further analyses show that in firms with a low governance score, CG does not have a mediation effect. Conversely, the authors find that firms with superior CSR performance have higher forecast quality through the mediation effect of CG. The authors also find that the mediation effect of CG is more pronounced for the environmental component than for the social component of CSR.

Originality/value:

To the best of the authors’ knowledge, this study is the first to investigate the role of CG as a mediator between CSR and analyst forecast quality and to reveal that the strength of this effect varies depending on firms’ CG level and CSR commitment.

DOI

10.1108/MEDAR-02-2021-1200

Access Rights

subscription content

Share

 
COinS