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Quality of working environment and corporate financial distress

Author

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  • Tho Pham

    (University of Reading)

  • Oleksandr Talavera

    (University of Birmingham)

  • Geoffrey Wood

    (Western University)

  • Shuxing Yin

    (University of Sheffield)

Abstract

This study examines the impacts of quality of working environment and its components on corporate financial distress. Employing a unique dataset of firm-level data from 63 countries over the period of 2012-2018, we find that a better working environment is related to a higher level of financial soundness. Particularly, firms which have better training and career development policies are less likely to take excessive risks. Further examination suggests that the quality of working environment tends to affect corporate financial risk by influencing firms' cash-holding policies.

Suggested Citation

  • Tho Pham & Oleksandr Talavera & Geoffrey Wood & Shuxing Yin, 2021. "Quality of working environment and corporate financial distress," Discussion Papers 21-04, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:21-04
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    2. Xing, Kai & Yang, Fang & Liu, Ping & Wang, Jue & Wu, Junchuan, 2025. "Environmental violations and financial distress risk: Evidence from Chinese listed heavily polluting companies," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
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    More about this item

    Keywords

    quality of working environment; quality of life; risk taking; financial distress.;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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