Do corporate site visits by analysts and institutional investors increase labor investment efficiency?

IF 2.3 Q2 BUSINESS, FINANCE
Wenfei Li, Zhenyang Tang, Chufen Chen
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引用次数: 0

Abstract

Purpose

Corporate site visits increase labor investment efficiency.

Design/methodology/approach

Our empirical model for the baseline analysis follows those of Jung et al. (2014) and Ghaly et al. (2020).

Findings

We show that corporate site visits are associated with significantly higher labor investment efficiency; more specifically, site visits reduce both over-hiring and under-hiring of employees. The effect of site visits on labor investment efficiency is more pronounced for firms with higher labor adjustment costs, greater financial constraints, weaker corporate governance and lower financial reporting quality. We also find that site visits mitigate labor cost stickiness.

Originality/value

First, while the literature has suggested how the presence of institutional investors and analysts may affect labor investment decisions, we focus on institutional investors and analysts’ activities and interactions with firm executives. We provide direct evidence that institutional investors and analysts may use corporate site visits to improve labor investment efficiency. Second, our study adds to a line of recent studies on how corporate site visits reduce information asymmetry and agency conflicts. We show that corporate site visits allow institutional investors and analysts to influence labor investment efficiency. We also provide new evidence that corporate site visits reduce labor cost stickiness.

分析师和机构投资者对企业的实地考察是否会提高劳动力投资效率?
研究结果我们发现,企业实地考察能显著提高劳动力投资效率;更具体地说,实地考察能减少过度雇佣和雇佣不足。对于劳动力调整成本较高、财务约束较大、公司治理较弱和财务报告质量较低的企业,实地考察对劳动力投资效率的影响更为明显。我们还发现,实地考察可以缓解劳动力成本粘性。原创性/价值首先,虽然有文献指出机构投资者和分析师的存在可能会影响劳动力投资决策,但我们关注的是机构投资者和分析师的活动以及与企业高管的互动。我们提供的直接证据表明,机构投资者和分析师可能会利用企业实地考察来提高劳动力投资效率。其次,我们的研究补充了近期关于企业实地考察如何减少信息不对称和代理冲突的一系列研究。我们的研究表明,企业实地考察允许机构投资者和分析师影响劳动力投资效率。我们还提供了企业实地考察能降低劳动力成本粘性的新证据。
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来源期刊
Asian Review of Accounting
Asian Review of Accounting BUSINESS, FINANCE-
CiteScore
3.20
自引率
25.00%
发文量
32
期刊介绍: Covering various fields of accounting, Asian Review of Accounting publishes research papers, commentary notes, review papers and practitioner oriented articles that address significant international issues as well as those that focus on Asia Pacific in particular.Coverage includes but is not limited to: -Financial accounting -Managerial accounting -Auditing -Taxation -Accounting information systems -Social and environmental accounting -Accounting education Perspectives or viewpoints arising from regional, national or international focus, a private or public sector information need, or a market-perspective or social and environmental perspective are greatly welcomed. Manuscripts that present viewpoints should address issues of wide interest among accounting scholars internationally and those in Asia Pacific in particular.
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