Capital market frictions and human capital investment: Evidence from workplace safety around regulation SHO
John (Jianqiu) Bai,
Eunju Lee and
The Financial Review, 2020, vol. 55, issue 2, 339-360
This paper examines the effect of capital market frictions on firms’ workplace safety. Using Regulation SHO as a natural experiment, we find a significant increase in work‐related injury rates of pilot firms. The effect is stronger for firms in more competitive industries and with high financial constraints, and weaker for firms whose employees have high negotiating power and with good corporate governance. Further tests suggest that managers’ myopia shifts their focus away from investments in workplace safety when workplace safety is not related to firm performance. Overall, the results highlight how capital market frictions affect firms’ investment in human capital.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:55:y:2020:i:2:p:339-360
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516
Access Statistics for this article
The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan
More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().