Firing Costs and Capital Structure: Evidence from Wrongful Discharge Laws

DOI

10.2991/978-94-6239-787-3_60How to use a DOI?

Keywords

Wrongful Discharge Laws; Financial Leverage; Financial Constraint; Difference-in-Difference

Abstract

Using a sample of 58440 firm-year observations from 1965 to 1998 in the United States, this study investigates the relation between wrongful discharge laws and financial leverage. By using Difference-in-Difference model, this study reaches the results that show a negative impact of the adoption of the good faith exception on a firm’s financial leverage, while the implied contract and the public policy exceptions have no significant influence on financial leverage.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Danqing Hu
PY  - 2026
DA  - 2026/09/29
TI  - Firing Costs and Capital Structure: Evidence from Wrongful Discharge Laws
BT  - Proceedings of the 2026 4th International Conference on Management Innovation and Economy Development (MIED 2026)
PB  - Atlantis Press
SP  - 598
EP  - 607
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-787-3_60
DO  - 10.2991/978-94-6239-787-3_60
ID  - Hu2026
ER  -