Financial Reporting and Employee Job Search

• 成果类型: Article
• 署名作者: Dehaan, Ed; Li, Nan; Zhou, Frank S.
• 署名单位: University of Washington; University of Washington Seattle; University of Toronto; University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12469
• 发表日期: 2023
• 页码: 571-617
• 关键词: voluntary disclosure; LABOR; INFORMATION; ECONOMICS; MARKET

摘要

We investigate the effects of financial reporting on current employee job search, that is, whether firms' public financial reports cause their employees to reevaluate their jobs and consider leaving. We develop theory for why current employees use earnings announcements (EAs) to inform job search decisions, and empirically investigate job search based on employees' activity on a popular job market website. We find that job search by current employees increases significantly during EA weeks, especially when employees are more mobile and when their information frictions are greater. We also find that employees use EAs to update their expectations about their employers' economic prospects, consistent with learning, and some evidence that positive announcements elicit less search. Our paper contributes to the burgeoning labor and accounting literature by providing among the first evidence closely linking financial reports to employee learning and job search.