 Workplace safety accident, employee treatment, and firm value: Evidence from ChinaYunhao Dai, Xinchu Tong and Li Wang Economic Modelling, 2022, vol. 115, issue C Abstract: Workplace safety has become a key priority in China. However, the impact of workplace safety accidents on firm value remains unexplored. In this paper, using a dataset of 249 workplace safety accidents that occurred between 2007 and 2020, we find that workplace safety accidents result in a significant average drop of 2.5% of firm value (over $80 million) within 10 trading days. Firms with superior employee treatment will suffer lower financial market penalties, confirming the insurance effect of CSR activities. The moderating effect is also present in the overall CSR as well as in the stakeholder-related CSR dimensions. In addition, firms with workplace safety accidents will experience a greater decline in employee productivity and market valuation. Overall, the above findings emphasize the important role played by workplace safety and employee treatment for firm value and can provide policy implications for government, regulators, and corporate managers in emerging markets. Keywords: Workplace safety accident; Employee treatment; Firm value; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:115:y:2022:i:c:s0264999322002061 DOI: 10.1016/j.econmod.2022.105960 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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