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Financing Decision and Labor Cost: Evidence from South Asian Countries

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  • Thi Phuong Vy Le and Xuan Vinh Vo

    (University of Economics Ho Chi Minh City)

Abstract

This study investigates the effect of financial leverage on labor costs using a data sample of listed companies from Southeast Asian countries covering the period from 2009 to 2015. Using several techniques for robust results, the results show that financial leverage has a negative effect on labor costs. In addition, the study finds that the negative impact of financial leverage on labor cost tends to be less in state-owned, foreign-owned, and large companies.

Suggested Citation

  • Thi Phuong Vy Le and Xuan Vinh Vo, 2020. "Financing Decision and Labor Cost: Evidence from South Asian Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(1), pages 185-201, March.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:1:p:185-201
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial Leverage; Labor Cost; Ownership Structure;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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