Analyst Following, Group Affiliation, and Labor Investment Efficiency: Evidence from Korea

Mo, Kyoungwon; Lee, Kyung Yun

doi:10.3390/su11113152

Cited by 5 publications

(9 citation statements)

References 17 publications

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“…Therefore, using regression residuals to measure investment inefficiency is accepted by most scholars. For example, Mo and Lee [45] used the deviation (represented by residuals) between the actual number of employees and the expected number of employees to represent the low efficiency of labor investment. Similarly, Oh et al [46] used the residual measurement method to construct investment inefficiency.…”

Section: Dependent Variable: Investment Inefficiencymentioning

confidence: 99%

Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

2019

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The increasingly serious destruction of the natural environment represents a great threat to the sustainable development of human beings and the earth. Under pressure from the government and public opinion, companies must assume environmental responsibility; however, there is no conclusion on whether corporate environmental responsibility is beneficial to companies. From the perspective of investment efficiency, this paper collects panel data from Chinese listed companies from 2011 to 2016 to discuss the impact of corporate environmental responsibility on investment efficiency and the moderating role of the institutional environment and consumer environmental awareness. The results show that corporate environmental responsibility can significantly positively affect investment efficiency, but this effect is not a short-term effect; it needs time to play a role. Second, in regions with a good institutional environment, corporate environmental responsibility has a more significant impact on improving investment efficiency. Finally, with the improvement of consumer environmental awareness, companies that assume environmental responsibility can address underinvestment. The research in this paper supports stakeholder theory, indicating that corporate environmental responsibility is not “selfless dedication”. In addition, the research results of this paper are robust and not subject to endogenous influences.

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Section: Dependent Variable: Investment Inefficiencymentioning

confidence: 99%

Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

2019

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“…From an external supervision perspective, analysts can supervise and give advice for managers' decisions. Therefore, more analyst tracking and higher accuracy of the analysts' predictions can enhance labor investment efficiency [17]. Internal governance can also influence labor investment efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ghaly et al (2020) [15] claim that institutional investors tend to supervise the decision-making process of the management and are often related to efficient labor investment. Scholars also find that analyst following, macropolicies, and CEO traits are the influencing factors of labor investment efficiency [16][17][18]. However, the existing research is still limited, and the relationship between CSR and labor investment efficiency is not generally known.…”

Section: Introductionmentioning

confidence: 99%

“…The results prove that CSR also significantly impacts labor investment efficiency, reflecting the important role of CSR in firms' development. Second, labor investment is gaining increasing attention, and the factors influencing labor investment efficiency, such as analyst following [17], macro-polices [16], population structure [26], and so on, are gradually coming to light. However, the existing research is still limited.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Corporate Social Responsibility on Labor Investment Efficiency: Evidence from China

Yuan,

Yu,

Yin

2024

Sustainability

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This study examines the impact of corporate social responsibility (CSR) on labor investment efficiency utilizing a sample of China’s listed companies. The empirical results demonstrate that CSR improves labor investment efficiency, and the effect is significant in terms of both overinvestment and underinvestment. Findings from cross-sectional tests indicate that CSR has a more significant effect on labor investment efficiency in non-state-owned firms and firms with more financing constraints or higher labor adjustment costs. The conclusion is robust after utilizing a 2SLS regression, replacing indicators for labor investment efficiency and accounting for the impact of non-labor investment. In general, the results support stakeholder theory and confirm that CSR can enhance external monitoring and improve firms’ investment behavior.

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“…Mo and Lee (2019) [19] reported that an increase in labor investment efficiency is attributed to a reduction in a firm's over-firing problem. They document that the positive influence of unaffiliated analysts on labor investment efficiency holds when firms have high cash holdings.…”

Section: Labor Investment Efficiencymentioning

confidence: 99%

Does Corporate Governance Affect Labor Investment Efficiency?

Park

2022

Sustainability

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This study examined the effect of corporate governance on labor investment efficiency, using 5178 firm-year samples from companies listed on the Korean stock market over the period from 2011 to 2019. In addition, the relationship between corporate governance and labor investment efficiency according to whether the company belongs to a chaebol group was examined. Corporate governance was measured using KCGS’s corporate governance ratings. This study tried to verify whether labor investment inefficiency due to information asymmetry is improved by excellent corporate governance. The results show that in the case of the entire sample, the relationship between corporate governance and labor investment efficiency was significant in the positive (+) direction. That is, it is an empirical result indicating that a company with a sound governance structure is making effective labor investment. The samples were divided into overinvestment samples and underinvestment samples, and the relationship between corporate governance and labor investment efficiency was analyzed separately in the two samples. According to the results, the positive relationship between corporate governance and labor investment efficiency was significant only in the case of underinvestment samples. In addition, the positive relationship between corporate governance and labor investment efficiency was more statistically significant in the case of companies belonging to a chaebol group. This study provided implications for authorities, shareholders, and investors, etc., in that it suggests the role of corporate governance as a mechanism to alleviate the agency problem between managers and investors.

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Analyst Following, Group Affiliation, and Labor Investment Efficiency: Evidence from Korea

Cited by 5 publications

References 17 publications

Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

Impact of Corporate Environmental Responsibility on Investment Efficiency: The Moderating Roles of the Institutional Environment and Consumer Environmental Awareness

The Impact of Corporate Social Responsibility on Labor Investment Efficiency: Evidence from China

Does Corporate Governance Affect Labor Investment Efficiency?

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