Pro-Labor Institutions and Corporate Employment Efficiency

Boochun Jung*, Tony Kang, Woo Jong Lee, Gaoguang Zhou

*Corresponding author for this work

    Research output: Contribution to journalJournal articlepeer-review

    4 Citations (Scopus)

    Abstract

    We examine how labor-friendly institutional features (i.e., laborism) relate to corporate investment efficiency in labor in a sample of firms from 33 countries over 1996–2012. We consider three dimensions of laborism—the presence of a left-leaning government, rigidity of employee protection laws, and collectivist culture. Our evidence shows that firms operating in stronger laborism countries make less efficient labor investment decisions, which is consistent with higher labor adjustment costs associated with laborism.

    Original languageEnglish
    Pages (from-to)547-561
    Number of pages15
    JournalJournal of Accounting, Auditing and Finance
    Volume37
    Issue number3
    Early online date10 Jun 2020
    DOIs
    Publication statusPublished - Jul 2022

    Scopus Subject Areas

    • Accounting
    • Finance
    • Economics, Econometrics and Finance (miscellaneous)

    User-Defined Keywords

    • collectivism
    • employment efficiency
    • labor adjustment costs
    • laborism
    • pro-labor institutions

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