We investigate the impact of security analyst coverage on the incidence of corporate financial fraud in China. After controlling for the endogeneity between analyst following and fraud, we find that financial analyst coverage cannot significantly influence the incidence of fraud. The empirical findings suggest that financial analysts do not serve as external monitors to managers and large shareholders in China. © 2014 Taylor & Francis.
CITATION STYLE
Hu, M., & Yang, J. (2014). Can analyst coverage reduce the incidence of fraud? Evidence from China. Applied Economics Letters, 21(9), 605–608. https://doi.org/10.1080/13504851.2013.879273
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