Corporate financial frictions and employee mental health
Kárpáti,Daniel Renneboog,Luc
Kárpáti,Daniel
Renneboog,Luc
Abstract
This article argues that corporate financial frictions can have an adverse effect on employee mental health, an important determinant of employee productivity. To identify the causal effects of financial frictions, we exploit variation in firms' need to refinance their long-term debt in 2008, a period when refinancing became more difficult due to the credit crunch. Using administrative microdata, we find that antidepressant use grows significantly more among employees of firms in higher need of debt refinancing. Much of this effect occurs at employees keeping their jobs, pointing to decreased perceptions of job security as a transmission channel.
Description
Publisher Copyright: © The Author(s), 2023. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington.
Date
2024-08
Journal Title
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Volume Title
Publisher
Research Projects
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Journal Issue
Keywords
financial crisis, credit supply, mental health, job insecurity, job loss, depression, anti-depressants, G01 - Financial Crises, G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages, I12 - Health Behavior
Citation
Kárpáti, D & Renneboog, L 2024, 'Corporate financial frictions and employee mental health', Journal of Financial and Quantitative Analysis, vol. 59, no. 5, pp. 2256-2298. https://doi.org/10.1017/S0022109023000595
License
info:eu-repo/semantics/openAccess