Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20679
Authors: 
Cardinale, Mirko
Orszag, Mike
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1383
Abstract: 
This paper examines the empirical link between severance pay and corporate finance. Severance pay is an economic debt of the employer and hence should be taken into account by the market in its assessments of risk. Using a hand collected dataset of accounting data from Italy and Austria we find there is only a limited relationship between severance pay and market risk indicators. This suggests that arguments that severance pay systems destroy corporate value may need to be reassessed.
Subjects: 
severance pay
corporate finance
Austrian employee benefits
Italian employee benefits
JEL: 
G39
J32
J65
Document Type: 
Working Paper

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