Year: 2024
Type: article
Abstract: This study investigates whether firms make efficient labor investment decisions in response to media attention. The results show that media attention lowers labor investment efficiency, not through over‐firing but through over‐hiring, under‐firing, or under‐hiring. We interpret these findings as firms' intentional adjustment of their labor resources to recover from or preempt reputational damage. Overall, the media's pressure effects on labor investment efficiency suggest that media coverage can serve as friction in firms' labor investment decisions, highlighting the relatively unexplored role of the media compared with its monitoring function.
DOI: 10.1111/ajfs.12496
Authors: Sohee Park, Meeok Cho
Institutions: Kookmin University, Kyung Hee University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4403145585