Conservadurismo financiero y creación de empleo
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Universidad Politécnica de Cartagena
info
ISSN: 2174-3835
Ano de publicación: 2014
Volume: 2
Número: 1
Tipo: Artigo
Outras publicacións en: Atlantic Review of Economics: Revista Atlántica de Economía
Resumo
This article aims to analyze the phenomenon of financial conservatism in firms’ capital structures and relate it to their employment variation for a sample of Spanish companies during the 2007-2010 period. Financial conservatism consists of a low-leverage/high cash no-short-term capital structure policy. We use Jovanovic’s model (1982) that relates growth, age and size, as used by Heshmati (2001), to which we add a dummy indicating financial conservatism. As the growth of a company is measured as its number of employees variation, what we are ultimately analyzing is how financial conservatism affects job creation. Evidence shows that a financial conservative policy is positive for job creation.