Rank-and-File Employee Stock Options and Workplace Safety

Yangyang Chen; Emmanuel Ofosu; Madhu Veeraraghavan; Leon Zolotoy

Rank-and-File Employee Stock Options and Workplace Safety

Yangyang Chen^*, Emmanuel Ofosu, Madhu Veeraraghavan, Leon Zolotoy

^*Corresponding author for this work

Department of Accountancy

Research output: Conference Papers › RGC 32 - Refereed conference paper (without host publication) › peer-review

Abstract

We provide robust evidence that rank-and-file employee(R&F) stock options are negatively associated with employee injury rates. In cross-sectionalanalysis, we find that the documented effect is amplified among firms with greaterscope for employee free-riding and financially constrained firms, while is mitigated(amplified) among firms with stronger labor union presence (higher employee turnover). We employdifference-in-differences analysis around the passage of FAS 123R option expensing regulationand instrumental variable estimation to establish causality. Our findings areconsistent with the view that R&F stock options improve workplace safety by facilitating employeeretention and cooperation and by mitigating firms’ financing frictions.

Original language	English
Publication status	Published - Jun 2022
Event	2022 Asian Finance Association (AsianFA) Annual Conference - The Hong Kong Polytechnic University (Virtual), Hong Kong, China Duration: 27 Jun 2022 → 29 Jun 2022 https://www.polyu.edu.hk/af/news-and-events/event/2022/7/asianfa/

Conference

Conference	2022 Asian Finance Association (AsianFA) Annual Conference
Place	Hong Kong, China
Period	27/06/22 → 29/06/22
Internet address	https://www.polyu.edu.hk/af/news-and-events/event/2022/7/asianfa/

Bibliographical note

Research Unit(s) information for this publication is provided by the author(s) concerned.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Research Keywords

Rank-and-file employee stock options
workplace safety
employee injury rates
employee turnover
employee free-riding

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Chen, Y., Ofosu, E., Veeraraghavan, M., & Zolotoy, L. (2022). Rank-and-File Employee Stock Options and Workplace Safety. Paper presented at 2022 Asian Finance Association (AsianFA) Annual Conference, Hong Kong, China. https://polyuit-my.sharepoint.com/personal/afwebct_polyu_edu_hk/_layouts/15/onedrive.aspx?id=%2Fpersonal%2Fafwebct%5Fpolyu%5Fedu%5Fhk%2FDocuments%2F2022%20AsianFA%20Paper%2Fpaper%5F131%2Epdf&parent=%2Fpersonal%2Fafwebct%5Fpolyu%5Fedu%5Fhk%2FDocuments%2F2022%20AsianFA%20Paper&ga=1

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title = "Rank-and-File Employee Stock Options and Workplace Safety",

abstract = "We provide robust evidence that rank-and-file employee(R&F) stock options are negatively associated with employee injury rates. In cross-sectionalanalysis, we find that the documented effect is amplified among firms with greaterscope for employee free-riding and financially constrained firms, while is mitigated(amplified) among firms with stronger labor union presence (higher employee turnover). We employdifference-in-differences analysis around the passage of FAS 123R option expensing regulationand instrumental variable estimation to establish causality. Our findings areconsistent with the view that R&F stock options improve workplace safety by facilitating employeeretention and cooperation and by mitigating firms{\textquoteright} financing frictions.",

keywords = "Rank-and-file employee stock options, workplace safety, employee injury rates, employee turnover, employee free-riding",

author = "Yangyang Chen and Emmanuel Ofosu and Madhu Veeraraghavan and Leon Zolotoy",

note = "Research Unit(s) information for this publication is provided by the author(s) concerned.; 2022 Asian Finance Association (AsianFA) Annual Conference ; Conference date: 27-06-2022 Through 29-06-2022",

year = "2022",

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Chen, Y , Ofosu, E, Veeraraghavan, M & Zolotoy, L 2022, 'Rank-and-File Employee Stock Options and Workplace Safety', Paper presented at 2022 Asian Finance Association (AsianFA) Annual Conference, Hong Kong, China, 27/06/22 - 29/06/22. <https://polyuit-my.sharepoint.com/personal/afwebct_polyu_edu_hk/_layouts/15/onedrive.aspx?id=%2Fpersonal%2Fafwebct%5Fpolyu%5Fedu%5Fhk%2FDocuments%2F2022%20AsianFA%20Paper%2Fpaper%5F131%2Epdf&parent=%2Fpersonal%2Fafwebct%5Fpolyu%5Fedu%5Fhk%2FDocuments%2F2022%20AsianFA%20Paper&ga=1>

TY - CONF

T1 - Rank-and-File Employee Stock Options and Workplace Safety

AU - Chen, Yangyang

AU - Ofosu, Emmanuel

AU - Veeraraghavan, Madhu

AU - Zolotoy, Leon

N1 - Research Unit(s) information for this publication is provided by the author(s) concerned.

PY - 2022/6

Y1 - 2022/6

N2 - We provide robust evidence that rank-and-file employee(R&F) stock options are negatively associated with employee injury rates. In cross-sectionalanalysis, we find that the documented effect is amplified among firms with greaterscope for employee free-riding and financially constrained firms, while is mitigated(amplified) among firms with stronger labor union presence (higher employee turnover). We employdifference-in-differences analysis around the passage of FAS 123R option expensing regulationand instrumental variable estimation to establish causality. Our findings areconsistent with the view that R&F stock options improve workplace safety by facilitating employeeretention and cooperation and by mitigating firms’ financing frictions.

AB - We provide robust evidence that rank-and-file employee(R&F) stock options are negatively associated with employee injury rates. In cross-sectionalanalysis, we find that the documented effect is amplified among firms with greaterscope for employee free-riding and financially constrained firms, while is mitigated(amplified) among firms with stronger labor union presence (higher employee turnover). We employdifference-in-differences analysis around the passage of FAS 123R option expensing regulationand instrumental variable estimation to establish causality. Our findings areconsistent with the view that R&F stock options improve workplace safety by facilitating employeeretention and cooperation and by mitigating firms’ financing frictions.

KW - Rank-and-file employee stock options

KW - workplace safety

KW - employee injury rates

KW - employee turnover

KW - employee free-riding

M3 - RGC 32 - Refereed conference paper (without host publication)

T2 - 2022 Asian Finance Association (AsianFA) Annual Conference

Y2 - 27 June 2022 through 29 June 2022

ER -

Rank-and-File Employee Stock Options and Workplace Safety

Abstract

Conference

Bibliographical note

UN SDGs

Research Keywords

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