Conservadurismo financiero y creación de empleo

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 structu...

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Bibliographic Details
Published inAtlantic review of economics Vol. 2; no. 1; p. 1
Main Authors Hernández-Robles, Myriam, Sánchez-Vidal, F Javier
Format Journal Article
LanguageSpanish
Published La Coruna Atlantic Review of Economics 01.01.2014
Subjects
Capital requirements
Capital Structure
Conservadurismo Financiero
Crecimiento
Demanda de Trabajo
Employment
Estructura de capital
Financial conservatism
Financial services
Growth
Job creation
Labor Demand
Studies
Spain
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Summary: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.
ISSN:2254-2558
2174-3835
2174-3835