Equal Employment Opportunity Law and Firm Profitability
AbstractBased on a sample of 260 cases reported in the Wall Street Journal between 1964 and 1986, this study finds that the equity value of firms charged with violating equal employment opportunity (EEO) laws fell at the time that a suit, decision, or settlement was announced. Most dramatically, the value of firms involved in class action suits fell 15.6 percent on average around the time of the suit. Further, the average loss to shareholders exceeds the amount firms are required to spend to settle the case. This may be due to the expected costs of changing employment practices or to the information about the firm's management that is revealed by the case.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Journal of Human Resources.
Volume (Year): 26 (1991)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://jhr.uwpress.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1997.
"Market Forces and Sex Discrimination,"
NBER Working Papers
6321, National Bureau of Economic Research, Inc.
- Rosen, A., 1998.
"Search, Bargaining and Employer Discrimination,"
1998-13, Uppsala - Working Paper Series.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.