Skip to main content

Research Repository

Advanced Search

The impact of corruption on analyst coverage. [Journal article]

Hassan, Omaima A.G.; Giorgioni, Gianluigi


Gianluigi Giorgioni


This study investigates the impact of country-level corruption and firms' anti-bribery policies on analyst coverage. Analyst coverage has been identified as a powerful tool to detect fraud and should equally act as a possible tool to reduce corruption. It employs a negative binomial count regression method on a longitudinal dataset of a sample of S&P Global 1200 companies for the years 2010 to 2015. To control for potential endogeneity bias and improve the reliability of the estimation, both country-level corruption and firms' anti-bribery policies variables were instrumented. After controlling for potential endogeneity bias, the results show that the adoption of anti-bribery policies at firm level attract more analysts to follow a firm. The results for corruption at country level show that analyst coverage increases in less corrupted countries indicating that the costs of corruption exceed its potential benefits. When the variables corruption at country level and anti-bribery policies are interacted, the relationship is positive and highly significant. Given the potential important role played by anti-corruption measures, firms are encouraged to adopt them to reduce the incidence of corruption and to increase analyst coverage which will reinforce the benign effect of monitoring. Although the literature on corruption at the country level is rich, it is geared towards the determinants of corruption in contrast to its consequences, and fewer studies have focused on the impact of corruption at firm level due to data limitations. This paper addresses this gap and contributes to the literature on the consequences of corruption at firm level.


HASSAN, O.A.G. and GIORGIONI, G. 2019. The impact of corruption on analyst coverage. Managerial auditing journal [online], 34(3), pages 305-323. Available from:

Journal Article Type Article
Acceptance Date Jul 26, 2018
Online Publication Date Nov 1, 2018
Publication Date Mar 4, 2019
Deposit Date Jul 27, 2018
Publicly Available Date Nov 1, 2018
Journal Managerial auditing journal
Print ISSN 0268-6902
Electronic ISSN 1758-7735
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 34
Issue 3
Pages 305-323
Keywords Analyst coverage; Analysts following; Sellside analysts; Corruption; Anti-bribery policies; Multicountry; S&P Global 1200
Public URL
Related Public URLs


Related Outputs

You might also like

Downloadable Citations