Subsidized labour and firms: Investment, profitability, and leverage

Abstract

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Estimating employment responses to South Africa’s Employment Tax Incentive

“…Ebrahim (2020b) is a PhD chapter, which we cite as the latest version of this work. Marcelin et al (2019) use a very similar approach to examine effects of the ETI on firm investment, profits, and leverage, but it is excluded from our literature review, which focuses on employment and other labour market effects.…”

Firms’ resilience to financial constraints: The role of trade credit

“…It represents the universe of South African firms and consists of tax administrative information. Ebrahim et al (2017), Marcelin et al (2019), and Pieterse et al (2016) provide a more detailed description of the data. We augment the CIT-IRP5 panel with US firm-level data obtained from the COMPUSTAT database (S&P n.d.).…”

“…Almeida et al (2005),Denis and Sibilkov (2010),Gilchrist and Himmelberg (1995), and Whited (1992) employ debt ratings as a proxy for firms' financial constraints Acharya et al (2007),Almeida et al (2005),Denis and Sibilkov (2010),Marcelin et al (2019), andSaez et al (2019). concur that smaller and younger firms are more financially constrained.…”