2021年3月
Alternative Work Arrangements and Cost of Equity: Evidence from a Quasi-Natural Experiment
Journal of Financial and Quantitative Analysis
- 巻
- 56
- 号
- 2
- 開始ページ
- 569
- 終了ページ
- 606
- 記述言語
- 掲載種別
- 研究論文(学術雑誌)
- DOI
- 10.1017/s002210901900108x
- 出版者・発行元
- Cambridge University Press (CUP)
Abstract
I examine whether firms’ use of alternative work arrangements, particularly temporary agency workers, affects their cost of equity. Exploiting a major labor-market deregulation in Japan that induced manufacturing firms to increase their employment of temporary agency workers, I show that the cost of equity decreased in manufacturing firms, relative to nonmanufacturing firms, after the deregulation. Further analysis using variations within manufacturing firms provides corroborating evidence. The rigidity in labor expenses and the cost of debt also decreased in manufacturing firms. Overall, alternative work arrangements increase the flexibility in labor costs, leading to lower operating leverage and cost of capital.
I examine whether firms’ use of alternative work arrangements, particularly temporary agency workers, affects their cost of equity. Exploiting a major labor-market deregulation in Japan that induced manufacturing firms to increase their employment of temporary agency workers, I show that the cost of equity decreased in manufacturing firms, relative to nonmanufacturing firms, after the deregulation. Further analysis using variations within manufacturing firms provides corroborating evidence. The rigidity in labor expenses and the cost of debt also decreased in manufacturing firms. Overall, alternative work arrangements increase the flexibility in labor costs, leading to lower operating leverage and cost of capital.
- リンク情報
- ID情報
-
- DOI : 10.1017/s002210901900108x
- ISSN : 0022-1090
- eISSN : 1756-6916