Employee treatment and its implications for bondholders

Tsung-Kang Chen, Yan Shing Chen, Hsiao Lin Yang

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


We examine the various channels through which the quality of a firm's employee relations can affect the welfare of bondholders. Our evidence suggests that better employee treatment benefits bondholders and leads to a lower bond spread by enhancing a firm's productivity, and by reducing the likelihood of product failures, labor strife, and employee turnover. However, a higher level of satisfaction is costlier for bondholders in firms facing more severe financial constraints or agency problems.

Original languageEnglish
Pages (from-to)1047-1079
Number of pages33
JournalEuropean Financial Management
Issue number4
StatePublished - 1 Sep 2019


  • bond yield spreads
  • cost of debt
  • employee treatment

Fingerprint Dive into the research topics of 'Employee treatment and its implications for bondholders'. Together they form a unique fingerprint.

Cite this