Cash holdings and employee welfare

Ghaly, Mohamed and Anh Dang, Viet and Stathopoulos, Konstantinos (2015) Cash holdings and employee welfare. Journal of Corporate Finance, 33. pp. 53-70. ISSN 0929-1199

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Abstract

This paper examines the relation between employee welfare practices and corporate cash holdings. We find firms that are strongly committed to employee well-being, measured by ratings on employee relations, to hold more cash. The effect of employee welfare standards on cash holdings is stronger for firms in human-capital-intensive, competitive, and high-labor-mobility industries in which employees are more important to their businesses. These results are consistent with the predictions of the stakeholder theory. Overall, our paper provides novel evidence on the role human capital and employee relations play in a firm's cash management policy.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Corporate Finance
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1408
Subjects:
ID Code:
75460
Deposited By:
Deposited On:
09 Sep 2015 06:34
Refereed?:
Yes
Published?:
Published
Last Modified:
15 May 2020 03:46