Employment stability and corporate cash holdings

被引：1
|
作者：
Han, Syungjin [1 ]
Kim, Changhyun [2 ]
机构：
[1] Hongik Univ, Coll Business Adm, Seoul, South Korea
[2] China Europe Int Business Sch CEIBS, Strategy & Entrepreneurship, Shanghai, Peoples R China
来源：
APPLIED ECONOMICS LETTERS | 2022年 / 29卷 / 21期
关键词：
Cash holdings; employment stability; job security; implicit contract; UNEMPLOYMENT;
D O I：
10.1080/13504851.2021.1967274
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
This paper investigates how a firm's employment stability affects the level of its cash holdings. We find that firms with high employment stability (as measured by one minus a firm's employment elasticity with respect to its sales) maintain large cash holdings. The positive effect of employment stability on cash holdings is stronger for R&D intensive firms and firms with high firm-specific human capital. These results are consistent with theories predicting that firms hold cash to signal the credibility of their employment policies regarding job security.
引用
收藏
页码：1991 / 1995
页数：5
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