Employment protection legislation and R&D investment

Quoc Trung Tran

Research in International Business and Finance, 2023, vol. 64, issue C

Abstract: This paper examines how employment protection legislation influences corporate R&D investment. With a sample of 113,228 observations across 23 OECD countries from 2001 to 2018, I document that firms in strong employment protection legislation have lower R&D expenditure and investment efficiency. In addition, I find that the effect of employment protection on R&D expenditure is stronger in financially constrained firms but the effect of employment protection on R&D investment efficiency is stronger in financially unconstrained firms.

Keywords: Employment protection; R&D; Investment; Investment efficiency (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)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531922001970

DOI: 10.1016/j.ribaf.2022.101811

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