Open access
Sep 2026
The Speed of Corporate Cash Adjustment: Evidence From Labor Protection Laws
This study examines how labor protection affects the dynamics of corporate cash policy. Using the staggered adoption of U.S. state‐level wrongful discharge laws, we find that stronger labor protection reduces the speed of cash adjustment by 16.7%. The effect is asymmetric, concentrated among cash‐rich firms, and more...
Rong-Bing Xiao, P. Asimakopoulos, Fangming Xu et al.
· The Financial Review · 0 citations