Firm Benefits of Workers' Financial Well-Being

Las Helge Haß; Paul Hribar; Claudia Marangoni; Roberto Pinto

doi:10.2139/ssrn.5036415

Back

Firm Benefits of Workers' Financial Well-Being

Working paper

Open access

Firm Benefits of Workers' Financial Well-Being

Las Helge Haß, Paul Hribar, Claudia Marangoni and Roberto Pinto

SSRN

12/02/2024

DOI: 10.2139/ssrn.5036415

Files and links (1)

url

https://doi.org/10.2139/ssrn.5036415View

Open Access

Abstract

We investigate the impact of workers' financial well-being on their productivity, firm performance, and strategic accounting decisions. We examine changes in workers’ financial well-being by exploiting variations in consumer bankruptcy laws across U.S. states. We find that improved financial well-being among the workforce leads to reduced illness and injury-related absenteeism, enhanced labor productivity, and increased firm profitability. Consequently, firms exhibit a decline in real activities management, financial misstatements, and loss avoidance practices. Overall, our evidence suggests that enhancing workers' financial well-being not only boosts firm productivity and performance but also mitigates the likelihood of firms engaging in myopic decision-making.

Details

Title: Subtitle: Firm Benefits of Workers' Financial Well-Being
Creators: Las Helge Haß
Paul Hribar
Claudia Marangoni
Roberto Pinto
Resource Type: Working paper
DOI: 10.2139/ssrn.5036415
Publisher: SSRN
Number of pages: 50 pages
Language: English
Date posted: 12/02/2024
Date updated: 12/03/2024
Academic Unit: Accounting
Record Identifier: 9984770783602771

Metrics

12 Record Views