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Asymmetric information and employment: evidence from the U.S. banking sector

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  • Apergis, Nicholas
  • Fafaliou, Irene
  • Stefanitsis, Marinos

Abstract

The goal of this paper is to analyze and assess the role of asymmetric information for employment performance in the case of the U.S. banking industry. To this end, the analysis performs a number of methodological approaches, such as panel cointegration and long- and short-run panel causality, spanning the period 2000–2013. The findings provide evidence that asymmetric information exerts a negative effect on employment. The results remain robust after the implementation of further checks.

Suggested Citation

  • Apergis, Nicholas & Fafaliou, Irene & Stefanitsis, Marinos, 2016. "Asymmetric information and employment: evidence from the U.S. banking sector," The Journal of Economic Asymmetries, Elsevier, vol. 14(PB), pages 199-210.
    • Handle: RePEc:eee:joecas:v:14:y:2016:i:pb:p:199-210
    DOI: 10.1016/j.jeca.2016.09.001
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    More about this item

    Keywords

    Asymmetric information; Employment; U.S. banking; Panel data; E24; G14; G21; C33;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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