Template-Type: ReDIF-Paper 1.0
Author-Name: Koji Takahashi
Author-X-Name-First: Koji 
Author-X-Name-Last: Takahashi
Author-Name: Sumiko Takaoka
Author-X-Name-First: Sumiko 
Author-X-Name-Last: Takaoka
Title: How much do firms need to satisfy employees? - Evidence from credit spreads and online employee reviews
Abstract: Using employee reviews accumulated in online platform service and ESG scores, this paper studies the relationship between firms' workforce benefits and their credit risk. We provide evidence that the sign of the effect of employee treatment on credit spreads depends on the sectoral intensity of human capital. In a sector with high intensity of human capital, especially in the manufacturing sector, more generous benefits for workers lead to lower credit spreads. In contrast, in a sector with low intensity, they are associated with larger credit spreads. We also find evidence that the lowering effect on credit spreads in sectors with high human capital intensity is mainly due to increased labor productivity.
Creation-Date: 2023-07
File-URL: https://www.bis.org/publ/work1111.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1111.htm
File-Format: text/html
Number: 1111
Keywords: employee satisfaction, online employee review, credit risk, labor risk
Classification-JEL: G12, J28, J32
Handle: RePEc:bis:biswps:1111