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Internal Information Environment and Labor Investment Efficiency

Xin Luo and Fan Zhang

Accounting and Finance Research, 2020, vol. 9, issue 4, 70

Abstract: This study investigates the relation between internal information environment and labor investment efficiency. We argue that better internal information quality allows managers to obtain more timely and accurate information from subordinates and therefore make better decisions in labor investments. Our results suggest that the labor investments of firms with high quality internal information have less deviation from the optimal level. This association holds for both companies in industries with high and low union coverage.

Date: 2020
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