Browsing by Author "Yang, Hsiao-Lin"

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Employee treatment and its implications for bondholders
(2019-09-01)
Chen, Tsung-Kang
;
Chen, Yan-Shing
;
Yang, Hsiao-Lin
;
管理科學系
;
Department of Management Science
We examine the various channels through which the quality of a firm's employee relations can affect the welfare of bondholders. Our evidence suggests that better employee treatment benefits bondholders and leads to a lower bond spread by enhancing a firm's productivity, and by reducing the likelihood of product failures, labor strife, and employee turnover. However, a higher level of satisfaction is costlier for bondholders in firms facing more severe financial constraints or agency problems.