Labor investment inefficiency and LGBTQ+-friendliness

Lisa Schopohl; Andrew Urquhart; Hanxiong Zhang

doi:10.1016/j.irfa.2024.103469

Labor investment inefficiency and LGBTQ+-friendliness

Lisa Schopohl, Andrew Urquhart^*, Hanxiong Zhang

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › peer-review

Abstract

We study the effect of firms' LGBTQ+ friendliness on their labor investment efficiency and find that an improvement in firms' LGBTQ+ friendliness leads to greater labor investment inefficiencies, and that more LGBTQ+ friendly firms tend to underinvest in labor. However, we show that this relationship diminishes over time as societal and legal support for LGBTQ+ equal rights increases. A variety of firm and societal characteristics moderate the negative link between corporate LGBTQ+ friendliness and labor investment efficiency.

Original language	English
Article number	103469
Number of pages	21
Journal	International Review of Financial Analysis
Volume	95
Early online date	23 Jul 2024
DOIs	https://doi.org/10.1016/j.irfa.2024.103469
Publication status	E-pub ahead of print - 23 Jul 2024

Keywords

LGBTQ+-friendliness
Labor investment efficiency
Diversity

Access to Document

10.1016/j.irfa.2024.103469

Cite this

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