IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v27y2020i3p280-299.html
   My bibliography  Save this article

Does the productivity of labor influence credit risk? new evidence from South Korea

Author

Listed:
  • Hyoung-joo Lim
  • Dafydd Mali

Abstract

Using a sample of 1,666 Korean KRX listed firm observations, we find a positive relation between the productivity of labor in period t and credit ratings in period t + 1, suggesting that firms that use the least amount of input (labor) to achieve output (sales) are considered to have decreasing levels of default risk. After we divide our sample into investment grade and non-investment grade firm samples, the relation changes. We find a consistent relation for the investment grade sample. However, the relation is negative for the non-investment grade suggesting that market participants capture NIG firm’s potential detrimental behavior.

Suggested Citation

  • Hyoung-joo Lim & Dafydd Mali, 2020. "Does the productivity of labor influence credit risk? new evidence from South Korea," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 27(3), pages 280-299, May.
    • Handle: RePEc:taf:raaexx:v:27:y:2020:i:3:p:280-299
    DOI: 10.1080/16081625.2018.1540937
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2018.1540937
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2018.1540937?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dafydd Mali & Hyoung‐joo Lim, 2021. "Do Relatively More Efficient Firms Demand Additional Audit Effort (Hours)?," Australian Accounting Review, CPA Australia, vol. 31(2), pages 108-127, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:27:y:2020:i:3:p:280-299. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.