Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms

Jennifer Brown and David A. Matsa

No 18208, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use novel data from a leading online job search platform to examine the impact of corporate distress on firms’ ability to attract job applicants. Survey responses suggest that job seekers accurately perceive firms’ financial condition, as measured by companies’ credit default swap prices and accounting data. Analyzing responses to job postings by major financial firms during the Great Recession, we find that an increase in an employer’s distress results in fewer and lower quality applicants. These effects are particularly evident when the social safety net provides workers with weak protection against unemployment and for positions requiring a college education.

JEL-codes: G20 G32 G33 J64 M5 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-bec and nep-lab
Note: CF LS
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Published as Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms Jennifer Brown Northwestern University - Kellogg School of Management David A. Matsa Northwestern University - Kellogg School of Management; National Bureau of Economic Research (NBER) January 24, 2013
Published as JENNIFER BROWN & DAVID A. MATSA, 2016. "Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms," The Journal of Finance, vol 71(2), pages 507-550.

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Journal Article: Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms (2016)
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