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Employment stability and corporate cash holdings.
- Source :
- Applied Economics Letters; Dec2022, Vol. 29 Issue 21, p1991-1995, 5p, 2 Charts
- Publication Year :
- 2022
-
Abstract
- This paper investigates how a firm's employment stability affects the level of its cash holdings. We find that firms with high employment stability (as measured by one minus a firm's employment elasticity with respect to its sales) maintain large cash holdings. The positive effect of employment stability on cash holdings is stronger for R&D intensive firms and firms with high firm-specific human capital. These results are consistent with theories predicting that firms hold cash to signal the credibility of their employment policies regarding job security. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13504851
- Volume :
- 29
- Issue :
- 21
- Database :
- Complementary Index
- Journal :
- Applied Economics Letters
- Publication Type :
- Academic Journal
- Accession number :
- 160050465
- Full Text :
- https://doi.org/10.1080/13504851.2021.1967274