Labor Protection Laws and Bank Loan Contracting
研究了劳动法规限制企业调整劳动力灵活性如何影响银行贷款成本，发现就业保护增强导致贷款利差上升、合同条款收紧和所有权结构分散，对高劳动周转率行业和违约风险高的企业影响更大。
This paper examines the impact of labor regulations that restrict firms’ flexibility to adjust labor resources on the cost of corporate bank loans. Using within-country variation in employment protection legislation across 25 countries, I find that increases in employment protection lead to higher loan spreads, tighter nonprice loan contract terms, and more diffuse loan ownership structure. The effects of labor regulations are greater in industries with a higher rate of labor turnover and among borrowers with a higher probability of default. These results suggest that rigidities imposed by labor regulations have a significant impact on firms’ cost of capital.