Work from Home Suitability and Credit Risk Assessment

IF 2.5 3区 管理学 Q2 BUSINESS, FINANCE
Harvey Nguyen, Mia Hang Pham, Cameron Truong
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引用次数: 0

Abstract

Employing firm-level work from home (WFH) suitability derived from the U.S. universe job postings, we investigate whether rating agencies and debt holders incorporate WFH suitability in their risk assessments. We document that firms with higher WFH suitability have higher credit ratings and lower costs of debt. Our results are robust to different fixed effect estimations, sampling methods, and controls. We identify two ways that WFH suitability translates into higher credit ratings: high WFH suitability is associated with lower future cash flow volatility and lower default risk. Overall, our study suggests that WFH suitability is an important determinant of credit risk assessments and that firms should see flexible work arrangements as an effective strategy in their crisis management planning.
在家工作的适宜性和信用风险评估
采用公司层面的在家工作(WFH)适用性,我们调查了评级机构和债务持有人是否将WFH适用性纳入其风险评估。我们发现,具有较高WFH适用性的公司具有较高的信用评级和较低的债务成本。我们的结果对不同的固定效应估计、抽样方法和控制都具有鲁棒性。我们确定了两种方式,即WFH适宜性转化为更高的信用评级:高WFH适宜性与较低的未来现金流波动性和较低的违约风险相关。总的来说,我们的研究表明,灵活的工作安排是信用风险评估的一个重要决定因素,企业应该将灵活的工作安排视为危机管理计划中的一种有效策略。
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来源期刊
European Accounting Review
European Accounting Review BUSINESS, FINANCE-
CiteScore
7.00
自引率
6.10%
发文量
58
期刊介绍: Devoted to the advancement of accounting knowledge, it provides a forum for the publication of high quality accounting research manuscripts. The journal acknowledges its European origins and the distinctive variety of the European accounting research community. Conscious of these origins, European Accounting Review emphasises openness and flexibility, not only regarding the substantive issues of accounting research, but also with respect to paradigms, methodologies and styles of conducting that research. Though European Accounting Review is a truly international journal, it also holds a unique position as it is the only accounting journal to provide a European forum for the reporting of accounting research.
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