Analyst coverage and lawsuit risk

ABSTRACT

In this study, we use a unique, hand-collected dataset of employee lawsuits and study the impact of analyst coverage on labour relations. We find that an increase in analyst coverage lowers the work-related litigations. In addition, we show that an increased number of analysts lowers the litigation cost, measured by settlement fees and attorney fees. Our results suggest analysts have an important impact on employee relations. Our research enriches the literature on employment practices and analyst coverage.

KEYWORDS:

• Labor laws
• litigation process
• labor process

JEL CLASSIFICATION:

• K31
• K41
• G30

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

¹ https:// www.nlrb.gov/news-outreach/graphs-data/recent-filings.