The DOI matches its Crossref record; 69 of the 69 references it cites were found in a registry or an index.
Employment Protection, Investment, and Firm Growth
Open accessAbstract
We exploit the adoption of U.S. state-level labor protection laws to study the effect of employment protection on corporate investment rates and sales growth. We find that, following the adoption of these laws, capital expenditures as a percentage of book assets decrease, resulting in slower sales growth. Our findings are consistent with theories predicting that greater employment protection discourages investment by making projects more irreversible. Supporting this channel, following negative cash flow shocks, firms are less likely to downsize operations in states that have adopted these laws but more likely to downsize in states that have not adopted these laws. Authors have furnished code, data, and an Internet Appendix, which are available on the Oxford University Press Web site next to the link to the final published paper online.
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Cites
Coase, R. H. (1960) · The Journal of Law and Economics · doi:10.1086/466560 · Cited by 18,255
How Much Should We Trust Differences-in-Differences Estimates?
Bertrand, M., Duflo, E., & Mullainathan, S. (2004) · The Quarterly Journal of Economics · doi:10.1162/003355304772839588 · Cited by 10,641
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Kaplan, S. N., & Zingales, L. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555163 · Cited by 6,770
Financing Constraints and Corporate Investment
Fazzari, S. M., Hubbard, R. G., Petersen, B. C., Blinder, A. S., & Poterba, J. M. (1988) · Brookings Papers on Economic Activity · doi:10.2307/2534426 · Cited by 5,574
New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index
Hadlock, C. J., & Pierce, J. R. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhq009 · Cited by 5,533
Financing Constraints and Corporate Investment
Fazzari, S., Hubbard, R. G., & Petersen, B. (1987) · National Bureau of Economic Research · doi:10.3386/w2387 · Cited by 4,351
Irreversibility, Uncertainty, and Cyclical Investment
Bernanke, B. S. (1983) · The Quarterly Journal of Economics · doi:10.2307/1885568 · Cited by 4,112
Austin, P. C. (2011) · Pharmaceutical Statistics · doi:10.1002/pst.433 · Cited by 3,949
Skills, Tasks and Technologies: Implications for Employment and Earnings
Acemoglu, D., & Autor, D. (2011) · Handbook of Labor Economics · doi:10.1016/s0169-7218(11)02410-5 · Cited by 3,799
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Metadata
- Authors
- Bai, J. (., Fairhurst, D., & Serfling, M.
- Venue
- The Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2019-06-24
- Volume
- 33
- Issue
- 2
- Pages
- 644-688
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3123753159
- Cited by
- 282
- References
- 69
- FWCI
- 56.39
- Type
- journal article
- Language
- en
- Open access
- green
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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