Employment protection and corporate risk-taking

Quoc Trung Tran

Finance Research Letters, 2023, vol. 51, issue C

Abstract: This paper examines how employment protection laws affect corporate risk-taking. Using a sample of 19,335 firms from 27 OECD countries over the period 2002–2018, we find that strong employment protection legislation reduces corporate risk-taking. Moreover, the effect of employment protection legislation on corporate risk-taking is stronger in countries of high uncertainty avoidance culture and weaker in countries of high power distance culture.

Keywords: Employment protection; Risk-taking; Corporate governance (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322006511
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322006511

DOI: 10.1016/j.frl.2022.103475

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().