Cash Holdings and Labor Heterogeneity: The Role of Skilled Labor

• 成果类型: Article
• 署名作者: Ghaly, Mohamed; Viet Anh Dang; Stathopoulos, Konstantinos
• 署名单位: Lancaster University; University of Manchester; Alliance Manchester Business School
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx045
• 发表日期: 2017
• 页码: 3636
• 关键词: HURRICANE-KATRINA; adjustment costs; capital structure; MARKET; EMPLOYMENT; demand; FIRMS; migration; constraints; INVESTMENT

摘要

Firms differ in their dependence on skilled labor and face labor adjustment costs that increase with their workers' skill level. We show that firms with a higher share of skilled workers, and thus less flexibility to adjust their labor demand in response to cash flow shocks, hold more precautionary cash. The effect of labor skills on cash holdings is more pronounced for financially constrained firms and varies with exogenous differences in firing and hiring costs. We address endogeneity concerns by using subsamples of firms with reasonably similar characteristics, propensity score matching, and a quasi-experimental shock to labor markets.