Exploiting the staggered enactment of state-level constituency statutes as an exogenous increase in stakeholder orientation, this paper examines whether, and if so, how stakeholder orientation affects labor investment efficiency. Following constituency statutes adoption, we find firms experience...

We examine whether the variation in the individualism-collectivism dimension within the U.S. affects labor investment efficiency. Using the collectivism index developed by existing literature, we find that firms headquartered in collectivist states are more likely to deviate from the optimal...

Using the exogenous adoption of state-level constituency statute as a natural experiment for corporate stakeholderism and the data of U.S. manufacturing firms for the period of 1980-2018, we find that firms increase their inventory holdings after the adoption of the statute. This effect is more...