LGBT Employment Nondiscrimination and Capital Structure

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)33_Other conference paper

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Detail(s)

Original languageEnglish
Publication statusPresented - 9 Jun 2023

Conference

Title2023 Canadian Academic Accounting Association (CAAA) Annual Conference
LocationHybrid
PlaceCanada
CityQuébec City
Period8 - 10 August 2021

Abstract

We examine how firms adjust financial leverage to absorb the substantial resource expended to mitigate potential LGBT litigation risk and the increased labor adjustment costs associated with LGBT nondiscrimination. We document a negative association between firms’ LGBT nondiscrimination practices and financial leverage, and further show a reduction in firm’s financial leverage in response to passages of state LGBT employment nondiscrimination laws. The reduction is more pronounced in firms that are labor intensive, prone to mass layoffs, having experienced past LGBT lawsuits, and financially distressed. We conclude that firms adjust capital structure to accommodate the cost associated with LGBT employment nondiscrimination.

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Citation Format(s)

LGBT Employment Nondiscrimination and Capital Structure. / Hu, Xiaoli; Huang, Li; Li, Oliver Zhen et al.
2023. 2023 Canadian Academic Accounting Association (CAAA) Annual Conference, Québec City, Quebec, Canada.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)33_Other conference paper