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Does corporate sexual orientation equality affect labor investment efficiency?

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  • Chowdhury, Hasibul
  • Hossain, Ashrafee
  • Masum, Abdullah-Al
  • Zheng, Jiayi

Abstract

We investigate the effect of corporate sexual orientation equality (CSOE) on labor investment efficiency (LIE). We find strong evidence that this effect is negative. The relationship intensifies for firms with weaker monitoring and those requiring more highly skilled labor, and is incremental to the effects of corporate social responsibility (CSR) performance. This study adds to an emerging literature on corporate sexual orientation equality and to the literature on labor economics, as it establishes corporate sexual orientation equality as a determinant of labor investment efficiency.

Suggested Citation

  • Chowdhury, Hasibul & Hossain, Ashrafee & Masum, Abdullah-Al & Zheng, Jiayi, 2023. "Does corporate sexual orientation equality affect labor investment efficiency?," Global Finance Journal, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:glofin:v:55:y:2023:i:c:s1044028322000497
    DOI: 10.1016/j.gfj.2022.100747
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    More about this item

    Keywords

    Corporate sexual orientation equality; Labor investment efficiency; Labor economics; LGBT rights;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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