Labor skill and accounting conservatism

IF 3.3 3区管理学 Q1 BUSINESS, FINANCE

Journal of Accounting and Public Policy Pub Date : 2023-12-09 DOI:10.1016/j.jaccpubpol.2023.107172

Jeff Zeyun Chen , Youngki Jang , Boochun Jung , Minyoung Noh

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Abstract

We examine the role of labor market frictions in shaping firms’ accounting policies. We find that firms’ reliance on high-skill labor is negatively related to accounting conservatism, presumably because higher labor adjustment costs make conservative accounting policies more costly. Cross-sectional tests further support the notion that labor adjustment costs are the main driver for the negative relation between labor skill and accounting conservatism. Specifically, the negative relation is more pronounced when a firm i) operates in more competitive industries, ii) has a higher voluntary employee turnover rate, and iii) is more financially constrained. Finally, we show that the positive implication of accounting conservatism for future operating performance and cost of debt is weaker for firms requiring high labor skill, providing plausible explanations for a negative relation between labor skill and accounting conservatism. Collectively, we provide novel evidence on the relation between labor force heterogeneity and accounting conservatism.

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劳动技能和会计保守主义

我们研究了劳动力市场摩擦对企业会计政策的影响。我们发现，企业对高技能劳动力的依赖与会计保守主义呈负相关，这可能是因为较高的劳动力调整成本使得保守的会计政策成本更高。横截面检验进一步支持了劳动力调整成本是劳动力技能与会计保守主义负相关关系的主要驱动力这一观点。具体而言，当企业 i) 所处行业竞争更激烈，ii) 员工自愿离职率更高，iii) 财务更紧张时，这种负相关关系更为明显。最后，我们发现，会计保守主义对未来经营业绩和债务成本的积极影响对于需要高劳动技能的企业来说较弱，这为劳动技能与会计保守主义之间的负相关关系提供了合理的解释。总之，我们为劳动力异质性与会计保守主义之间的关系提供了新的证据。

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来源期刊

Journal of Accounting and Public Policy Multiple-

CiteScore

4.80

自引率

2.80%

发文量

期刊介绍： The Journal of Accounting and Public Policy publishes research papers focusing on the intersection between accounting and public policy. Preference is given to papers illuminating through theoretical or empirical analysis, the effects of accounting on public policy and vice-versa. Subjects treated in this journal include the interface of accounting with economics, political science, sociology, or law. The Journal includes a section entitled Accounting Letters. This section publishes short research articles that should not exceed approximately 3,000 words. The objective of this section is to facilitate the rapid dissemination of important accounting research. Accordingly, articles submitted to this section will be reviewed within fours weeks of receipt, revisions will be limited to one, and publication will occur within four months of acceptance.