Labor investment inefficiency and LGBTQ+-friendliness

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Schopohl, L. orcid id iconORCID: https://orcid.org/0000-0002-2150-3593, Urquhart, A. orcid id iconORCID: https://orcid.org/0000-0001-8834-4243 and Zhang, H. (2024) Labor investment inefficiency and LGBTQ+-friendliness. International Review of Financial Analysis, 95 (B). 103469. ISSN 1873-8079 doi: 10.1016/j.irfa.2024.103469

Abstract/Summary

We study the effect of firms’ LGBTQ+-friendliness on their labor investment efficiency and find that an improvement in firms’ LGBTQ+-friendliness leads to greater labor investment inefficiencies, and that more LGBTQ+-friendly firms tend to underinvest in labor. However, we show that this relationship diminishes over time as societal and legal support for LGBTQ+ equal rights increases. A variety of firm and societal characteristics moderate the negative link between corporate LGBTQ+-friendliness and labor investment efficiency.

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Item Type Article
URI https://reading-clone.eprints-hosting.org/id/eprint/117508
Identification Number/DOI 10.1016/j.irfa.2024.103469
Refereed Yes
Divisions Henley Business School > Finance and Accounting
Publisher Elsevier
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