The impact of paid maternity leave on corporate financial decisions : Cash holdings and dividend payout ratio
Date
2023
Authors
Gao, Shangyi
Editors
Advisors
Zurbruegg, Ralf
Cheong, Chee
Chiu, Chia-Yen (Chad)
Cheong, Chee
Chiu, Chia-Yen (Chad)
Journal Title
Journal ISSN
Volume Title
Type:
Thesis
Citation
Statement of Responsibility
Conference Name
Abstract
The study investigates how paid maternity leave (PML) laws affect corporate financial decisions, using a difference-in-differences approach based on the staggered enactment of the laws across U.S. states. The first essay reveals that the adoption of PML laws significantly reduces corporate cash holdings, especially in labor-intensive firms. Further analysis indicates increased employee productivity post-adoption is associated with declining cash holdings, representing a channel linking the laws to reduced precautionary savings. The second essay shows a positive correlation between PML and the dividend payout ratio. The correlation is particularly pronounced for firms characterized by high labor intensity and significant agency issues. The potential channel of the relationship is improved labor productivity. Overall, the findings provide investors with critical insights into cash holding and dividend payout changes and highlight stakeholder policies’ financial impacts.
School/Discipline
Adelaide Business School
Dissertation Note
Thesis (MPhil) -- University of Adelaide, Adelaide Business School, 2024
Provenance
This electronic version is made publicly available by the University of Adelaide in accordance with its open access policy for student theses. Copyright in this thesis remains with the author. This thesis may incorporate third party material which has been used by the author pursuant to Fair Dealing exceptions. If you are the owner of any included third party copyright material you wish to be removed from this electronic version, please complete the take down form located at: http://www.adelaide.edu.au/legals