The Effect of Human Capital on Stock Price Crash Risk

Si, Yi; Xia, Chongwu

doi:10.1007/s10551-022-05134-w

Cited by 19 publications

(4 citation statements)

References 102 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similar results also appeared in studies on Chinese listed firms through 2011-18 (Wang and Liao, 2021) [11] and through 2011-2017 (Wang and Yan, 2022) [12]. Si and Xia (2022) [13] studied a 2012-2017 sample of Chinese firms and found that employee quality improves the corporate internal information environment and reduces the stock price crash risk. Jin et al (2023) [14] studied corporate risk taking among China's A-share-listed firms during 2011-2017 and showed that higher levels of employee education may result in a higher level of corporate risk taking.…”

Section: Introductionsupporting

confidence: 65%

“…Some studies set up a solo measure to represent the overall employee quality (Call et al, 2017;Sun et al, 2020;Dong et al, 2022;Li, Liu and Wu, 2022) [10,[15][16][17]. Some studies focused on the proportions of employees with bachelor's degrees or above to measure human capital quality (Wang and Liao, 2021;Si and Xia, 2022;Jin et al, 2023) [11,13,14]. Some studies created two measures to describe employees with undergraduate and graduate education degrees (Li and Lu, 2020; Xue et al, 2020; Chen and Yoon, 2021; Wang and Yan, 2022) [9,12,18,19].…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Are Higher-Educated Employees More Responsible? A Study about Employee Quality and Corporate Environmental Sustainability

Fang,

2024

Sustainability

View full text Add to dashboard Cite

This paper explores how employee quality affects companies’ actions in terms of environmental protection and sustainable development. We use the proportions of the workforce with three education levels as proxies for employee quality and examine their respective impacts on three dimensions of corporate environmental sustainability: (1) reporting, (2) quality and standardization, and (3) attention and initiative. We investigate over 1300 firms listed in Chinese stock markets from 2006, the year when Chinese firms first released environmental issues and the Chinese regulatory divisions first announced a guideline, to 2021. The results indicate the following: (a) employee quality is positively associated with the reporting of corporate environmental sustainability, (b) companies with more educated employees are more likely to provide environmental and sustainable information with high standards and quality, and (c) companies with more educated employees are more likely to release environmental and sustainable information in solo reports as a reflection of the corporate attention on and initiative in environmental sustainability. Moreover, we find that employees at higher education levels have a stronger impact on corporate environmental sustainability. This paper contributes to the literature on human capital and environmental management.

show abstract

Section: Introductionsupporting

confidence: 65%

Section: Introductionmentioning

confidence: 99%

Are Higher-Educated Employees More Responsible? A Study about Employee Quality and Corporate Environmental Sustainability

Fang,

2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…As education is an important determinant of human capital quality (Bae & Kang, 2023;Si & Xia, 2022), a firm that relies heavily on human capital naturally recruits highly educated employees. Following previous studies (Call et al, 2017;Si & Xia, 2022), we proxy a firm's reliance on human capital with the firm-year level of employee education (EDU), calculated as the proportion of rank-and-file employees whose education level is greater than or equal to a bachelor's degree. 5 Following Bae and Kang (2023), we validate whether firms with a high proportion of highly educated employees rely heavily on human capital.…”

Section: Measure Of Human Capital Reliancementioning

confidence: 99%

“…We test this prediction in the Chinese context. As education is a primary component of human capital, highly educated employees are typically considered highly skilled or talented (Ghaly et al, 2017; Si & Xia, 2022). Figure 1 shows the proportion of highly educated employees in China from 2008 to 2020.…”

Section: Introductionmentioning

confidence: 99%

Deleveraging for talents: Human capital reliance and corporate leverage

Liu

Zheng

et al. 2023

Accounting & Finance

View full text Add to dashboard Cite

Using data from Chinese listed firms, we develop a measure of a firm's reliance on human capital that is based on its demand for highly educated employees. We find that a high reliance on human capital is linked to low corporate leverage, and this effect is more pronounced among firms at a high risk of human capital mobility and those facing high skilled‐labour adjustment costs. Our results indicate that firms strategically manage their capital structure to maintain financial flexibility, enabling them to effectively respond to the labour‐related costs associated with human capital losses and costly labour adjustments.

show abstract