This paper examines whether level of analyst following affects firms’ labor investment efficiency. Using a sample of US public companies from 2001 to 2015, we find that firms with greater analyst coverage make more efficient labor investment decisions. Increased efficiency of labor investment is ascribed to lower levels of firms’ over-firing problems. Moreover, we find that analysts have a more positive influence on efficiency of labor investment when firms have higher cash holdings. This paper emphasizes the role of analysts in firms’ labor investment decisions.

中文翻译：

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分析师会提高劳动力投资效率吗？

本文探讨了分析师追随水平是否会影响企业的劳动投资效率。通过使用2001年至2015年美国上市公司的样本，我们发现分析师覆盖率更高的公司做出的劳动投资决策更为有效。劳动力投资效率的提高归因于企业过度解雇问题的降低。此外，我们发现，当公司拥有更高的现金储备时，分析师对劳动力投资效率产生更积极的影响。本文着重分析人员在企业劳动力投资决策中的作用。