Pro-Labor Institutions and Corporate Employment Efficiency

Boochun Jung; Tony Kang; Woo Jong Lee; Gaoguang Zhou

doi:10.1177/0148558X20929859

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 journal › Journal article › peer-review

12 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 language	English
Pages (from-to)	547-561
Number of pages	15
Journal	Journal of Accounting, Auditing and Finance
Volume	37
Issue number	3
Early online date	10 Jun 2020
DOIs	https://doi.org/10.1177/0148558X20929859
Publication status	Published - Jul 2022

User-Defined Keywords

collectivism
employment efficiency
labor adjustment costs
laborism
pro-labor institutions

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10.1177/0148558X20929859

Cite this

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title = "Pro-Labor Institutions and Corporate Employment Efficiency",

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.",

keywords = "collectivism, employment efficiency, labor adjustment costs, laborism, pro-labor institutions",

author = "Boochun Jung and Tony Kang and Lee, \{Woo Jong\} and Gaoguang Zhou",

note = "Funding Information: The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: Lee appreciates financial support from the Institute of Management Research at Seoul National University. Funding Information: We thank Shirley Daniel, Dongyoung Lee, David Weber, and seminar participants at McGill University, University of Hawaii at Manoa, 2015 European Accounting Association Annual Congress, and 2015 Japan Accounting Association Conference for helpful comments. The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: Lee appreciates financial support from the Institute of Management Research at Seoul National University. Publisher Copyright: {\textcopyright} {\textcopyright}The Author(s) 2020.",

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doi = "10.1177/0148558X20929859",

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AB - 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.

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KW - labor adjustment costs

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KW - pro-labor institutions

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DO - 10.1177/0148558X20929859

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Pro-Labor Institutions and Corporate Employment Efficiency

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