Not just for investors: The role of earnings announcements in guiding job seekers

Choi, Bong-Geun; Choi, Jung Kyu; Malik, Sara

doi:10.1016/j.jacceco.2023.101588

Cited by 9 publications

(1 citation statement)

References 54 publications

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“…To highlight the role of diversity information, we can also estimate equation ( 3) for jobseekers with imperfect information about firms' diversity levels, as in our Baseline Condition. The frictions leading to such imperfect information are important in understanding jobseekers' decisions (Autor [2001], Choi, Choi, and Malik [2022]). In this case, θ BASE LI N E λ D d w measures a dollar equivalent for when a firm's underlying diversity changes by D but jobseekers only learn about this shift through their own imperfect information.…”

Section: Relative Sensitivity To Diversity Information (Rsdi) In Doll...mentioning

confidence: 99%

Do Jobseekers Value Diversity Information? Evidence from a Field Experiment and Human Capital Disclosures

Choi¹,

Pacelli²,

Rennekamp

et al. 2023

J of Accounting Research

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We examine how information about the diversity of a potential employer's workforce affects individuals’ job‐seeking behavior. We embed a field experiment in job recommendation emails from a leading career advice agency in the United States. The experimental treatment involves highlighting a diversity metric to jobseekers. Our results indicate that disclosing diversity scores in job postings leads jobseekers to click on firms with higher diversity scores, with such effects varying across jobseeker demographics. A follow‐up survey provides evidence on potential explanations for why jobseekers value diversity information. We then examine how jobseekers’ preferences for diversity relate to disclosure choices under the U.S. SEC Human Capital Disclosure requirement. We find that firms in industries characterized by higher jobseeker responsiveness to diversity information tend to voluntarily disclose diversity metrics in their 10‐Ks under these new disclosure requirements.

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Section: Relative Sensitivity To Diversity Information (Rsdi) In Doll...mentioning

confidence: 99%

Do Jobseekers Value Diversity Information? Evidence from a Field Experiment and Human Capital Disclosures

Choi¹,

Pacelli²,

Rennekamp

et al. 2023

J of Accounting Research

Self Cite

View full text Add to dashboard Cite

show abstract

Is hiring fast a good sign? The informativeness of job vacancy duration for future firm profitability

Chen

2023

Rev Account Stud

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Job vacancy duration reflects the time a firm spends searching, selecting, and hiring for a job opening. Capturing vacancy duration using the creation and deletion dates of job postings by US public firms, we examine the informativeness of vacancy duration for future firm profitability. We find that while firms that quickly fill low-skill job vacancies exhibit higher future profitability, firms that take more time to fill high-skill jobs exhibit higher future profitability. Our cross-sectional analyses across the benefits and costs of candidate selection and performance expectations suggest that the informativeness of vacancy duration comes from its reflection of firms’ hiring strategies. That is, firms expecting higher profitability recruit more intensively to avoid the opportunity cost associated with vacancies for low-skill jobs and to ensure the selection of high-quality workers for high-skill jobs. Further analyses show that the implication of job vacancy duration for future profitability is not incorporated timely in the capital markets, as evidenced by pessimistic analyst forecasts and positive earnings announcement returns in future quarters for firms with short (long) durations for low-skill (high-skill) jobs. These results demonstrate the informativeness of job vacancy duration for firm profitability and advance the understanding of firms’ hiring strategies.

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The gender effects of COVID: evidence from equity analysts

Li,

Wang

2024

Rev Account Stud

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Not just for investors: The role of earnings announcements in guiding job seekers

Cited by 9 publications

References 54 publications

Do Jobseekers Value Diversity Information? Evidence from a Field Experiment and Human Capital Disclosures

Do Jobseekers Value Diversity Information? Evidence from a Field Experiment and Human Capital Disclosures

Is hiring fast a good sign? The informativeness of job vacancy duration for future firm profitability

The gender effects of COVID: evidence from equity analysts

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