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Internal Information Environment and Labor Investment Efficiency

Author

Listed:
  • Xin Luo
  • Fan Zhang

Abstract

This study investigates the relation between internal information environment and labor investment efficiency. We argue that better internal information quality allows managers to obtain more timely and accurate information from subordinates and therefore make better decisions in labor investments. Our results suggest that the labor investments of firms with high quality internal information have less deviation from the optimal level. This association holds for both companies in industries with high and low union coverage.

Suggested Citation

  • Xin Luo & Fan Zhang, 2020. "Internal Information Environment and Labor Investment Efficiency," Accounting and Finance Research, Sciedu Press, vol. 9(4), pages 1-70, November.
    • Handle: RePEc:jfr:afr111:v:9:y:2020:i:4:p:70
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    References listed on IDEAS

    as
    1. Gallemore, John & Labro, Eva, 2015. "The importance of the internal information environment for tax avoidance," Journal of Accounting and Economics, Elsevier, vol. 60(1), pages 149-167.
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    Cited by:

    1. Ahrum Choi & Woo‐Jong Lee & Yong Gyu Lee & Gaoguang Zhou, 2023. "Internal Information Quality and Corporate Employment Decisions," Australian Accounting Review, CPA Australia, vol. 33(3), pages 262-283, September.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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