Title:Do workers benefit from financial innovation?
Time:2021.7.1 19:30-21:00
Presenter:Prof. Wang Qian
Abstract:
Employees are concerned about human capital risk when there is an increase in default risk for credit default swap (CDS) firms. We find that CDSs improve employee welfare, particularly for employees with greater concerns about unemployment risk. In addition, the CDS impact on employee welfare is more pronounced in firms with high labor union or financial analyst coverage. Furthermore, options trading also positively affects employee welfare. The results are robust to alternative employee welfare measures such as “100 Best Firms to Work for” and works' workplace safety. These findings suggest that financial derivatives can have real effects on employee welfare.
