Financing Constraints and Workplace Safety

Jonathan B. Cohn · Malcolm Wardlaw

313 citations0/0 files storedThe Journal of Finance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Occupational Health and Safety Research Working Capital and Financial Performance

Abstract

ABSTRACT We present evidence that financing frictions adversely impact investment in workplace safety, with implications for worker welfare and firm value. Using several identification strategies, we find that injury rates increase with leverage and negative cash flow shocks, and decrease with positive cash flow shocks. We show that firm value decreases substantially with injury rates. Our findings suggest that investment in worker safety is an economically important margin on which firms respond to financing constraints.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 313 citations exist upstream.

References

1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers 1977Determinants of corporate borrowing 1996Agency costs of free cash flow, corporate finance, and takeovers 1997Industry costs of equity 1988Financing Constraints and Corporate Investment 2003The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World 1984The effect of capital structure on a firm's liquidation decision 1996Leverage, investment, and firm growth

Cited by

2016Earnings expectations and employee safety 2020The Limits of Limited Liability: Evidence from Industrial Pollution 2018Determinants and consequences of financial distress: review of the empirical literature 2019Patent Trolls: Evidence from Targeted Firms 2021Fiduciary duty or loyalty? Evidence from co-opted boards and corporate misconduct 2023Employee Stock Ownership Plans and Corporate Environmental Engagement

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.