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

Lim, Hyoung joo and Mali, Dafydd ORCID: https://orcid.org/0000-0003-3582-2429 (2020) Does the productivity of labor influence credit risk? new evidence from South Korea. Asia-Pacific Journal of Accounting and Economics, 27 (3). pp. 280-299. ISSN 1608-1625

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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.

Item Type:	Article
Additional Information:	Publisher Copyright: © 2018, © 2018 City University of Hong Kong and National Taiwan University.
Uncontrolled Keywords:	credit risk,investment,labor,non-investment grade,productivity,accounting,finance,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/1400/1402
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	22 Aug 2024 15:30
Last Modified:	25 Sep 2024 18:03
URI:	https://ueaeprints.uea.ac.uk/id/eprint/96326
DOI:	10.1080/16081625.2018.1540937

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