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Labor investment inefficiency and LGBTQ+-friendliness

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  • Schopohl, Lisa
  • Urquhart, Andrew
  • Zhang, Hanxiong

Abstract

We study the effect of firms' LGBTQ+ friendliness on their labor investment efficiency and find that an improvement in firms' LGBTQ+ friendliness leads to greater labor investment inefficiencies, and that more LGBTQ+ friendly firms tend to underinvest in labor. However, we show that this relationship diminishes over time as societal and legal support for LGBTQ+ equal rights increases. A variety of firm and societal characteristics moderate the negative link between corporate LGBTQ+ friendliness and labor investment efficiency.

Suggested Citation

  • Schopohl, Lisa & Urquhart, Andrew & Zhang, Hanxiong, 2024. "Labor investment inefficiency and LGBTQ+-friendliness," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    • Handle: RePEc:eee:finana:v:95:y:2024:i:pb:s1057521924004010
    DOI: 10.1016/j.irfa.2024.103469
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