Bae, Kee-Hong; Kang, Jun-Koo; Wang, Jin - In: Journal of Financial Economics 100 (2011) 1, pp. 130-153
We investigate the stakeholder theory of capital structure from the perspective of a firm's relations with its employees. We find that firms that treat their employees fairly (as measured by high employee[hyphen (true graphic)]friendly ratings) maintain low debt ratios. This result is robust to...