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Employee mobility constraints and debt choice

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  • Ee, Mong Shan
  • Huang, He

Abstract

Using Inevitable Disclosure Doctrine adoptions as the exogeneous shocks, we find that firms gravitate towards bank debt financing following an increase in employee mobility constraints. Information asymmetry is the channel driving this effect.

Suggested Citation

  • Ee, Mong Shan & Huang, He, 2024. "Employee mobility constraints and debt choice," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004937
    DOI: 10.1016/j.econlet.2023.111467
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    References listed on IDEAS

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    More about this item

    Keywords

    Employee mobility; Inevitable disclosure doctrine; Debt choice;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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