Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146583
Authors: 
Hernández-Robles, Myriam
Sánchez-Vidal, F. Javier
Year of Publication: 
2014
Citation: 
[Journal:] Atlantic Review of Economics [ISSN:] 2174-3835 [Volume:] 2 [Year:] 2014 [Pages:] 1-27
Abstract (Translated): 
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.
Subjects: 
Financial conservatism
Capital Structure
Growth
Labor Demand
JEL: 
G32
J23
O16
Document Type: 
Article

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