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Managerial Time Horizons and the Decision to Put Operational Workers at Risk: The Role of Debt

Pagell, Mark; Wiengarten, Frank; Fan, Di; Humphreys, Paul; Lo, Chris K. Y.

Description

Previous research has established a link between the debt component of capital structure and managers making risky decisions. Literature in finance and strategy has explored the role of debt and concluded that increases in debt focus managerial decision making on short-term financial goals, suggesting that increases in debt might also lead to managers making decisions that put operational workers and the firm at long-term risk. Therefore this research explores if the strategic choice of a...[Show more]

dc.contributor.authorPagell, Mark
dc.contributor.authorWiengarten, Frank
dc.contributor.authorFan, Di
dc.contributor.authorHumphreys, Paul
dc.contributor.authorLo, Chris K. Y.
dc.date.accessioned2021-11-16T00:13:02Z
dc.identifier.issn0011-7315
dc.identifier.urihttp://hdl.handle.net/1885/251834
dc.description.abstractPrevious research has established a link between the debt component of capital structure and managers making risky decisions. Literature in finance and strategy has explored the role of debt and concluded that increases in debt focus managerial decision making on short-term financial goals, suggesting that increases in debt might also lead to managers making decisions that put operational workers and the firm at long-term risk. Therefore this research explores if the strategic choice of a firm’s level of debt predicts the firm’s likelihood of breaching safety regulations. Furthermore, this study explores the short and long-term financial implications of breaching safety regulations. Secondary safety and financial data collected in the United Kingdom is used to answer the research questions using logistic models and an event study. The results show that decisions on debt are a significant predictor of a firm’s likelihood of breaching safety regulation and that breaching safety regulation harms long-term financial performance. Strategic decisions on debt levels lead to further decisions that place the workforce and profitability of the firm at risk.
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.publisherWiley
dc.rights© 2018 Decision Sciences Institute
dc.sourceDecision Sciences
dc.subjectEvent Studies
dc.subjectFinance
dc.subjectSecondary Data
dc.subjectWorker Safety
dc.titleManagerial Time Horizons and the Decision to Put Operational Workers at Risk: The Role of Debt
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume50
dc.date.issued2018
local.identifier.absfor150309 - Logistics and Supply Chain Management
local.identifier.absfor091005 - Manufacturing Management
local.identifier.ariespublicationu5483920xPUB12
local.publisher.urlhttps://www.wiley.com/en-gb
local.type.statusPublished Version
local.contributor.affiliationPagell, Mark, University College Dublin
local.contributor.affiliationWiengarten, Frank, Ramon Llull University
local.contributor.affiliationFan, Di, College of Business and Economics, ANU
local.contributor.affiliationHumphreys, Paul, University of Ulster
local.contributor.affiliationLo, Chris K. Y. , Hong Kong Polytechnic University
local.description.embargo2099-12-31
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage582
local.bibliographicCitation.lastpage611
local.identifier.doi10.1111/deci.12338
local.identifier.absseo940505 - Workplace Safety
local.identifier.absseo950402 - Business Ethics
local.identifier.absseo910402 - Management
dc.date.updated2020-11-23T11:47:30Z
local.identifier.scopusID2-s2.0-85053542223
CollectionsANU Research Publications

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