The Effects of Corporate Bonds on Employment: Early Evidence from Greece

Karagiannis, S. and Thomakos, D. (2020). "The Effects of Corporate Bonds on Employment: Early Evidence from Greece", Review of Economic Analysis, 12 (2), 235-253

19 Pages Posted: 17 Sep 2020

See all articles by Sotirios Karagiannis

Sotirios Karagiannis

University of Peloponnese -School of Management, Economics and Informatics

Dimitrios D. Thomakos

University of Athens, Department of Business Administration

Date Written: 2020

Abstract

This study investigates the impact of corporate bonds issued by Greek listed firms on employment. Even though external financing and the effects on employment has been studied in the literature, we extend the existing literature by focusing for the first time on the specific role of corporate bonds on employment. Our empirical analysis is based on a panel dataset from 2001 to 2014 and we examine the effect of corporate bonds in the pre- and post-period of the Greek economic crisis, in which the banking system is vulnerable and unable to provide financing to the firms. The results suggest that corporate bonds have a positive effect on employment in the pre-crisis sample, denoting that firms hire employees and proceed to investment choices. On the contrary, during the recession, corporate bonds have a negative effect on employment. Firms reduce their costs and try to control their debt obligations by issuing corporate bonds.

Keywords: Corporate Bonds, Corporate Debt, Employment, Greek Economic Crisis, Recession

JEL Classification: G32, J23, M51

Suggested Citation

Karagiannis, Sotirios and Thomakos, Dimitrios D., The Effects of Corporate Bonds on Employment: Early Evidence from Greece (2020). Karagiannis, S. and Thomakos, D. (2020). "The Effects of Corporate Bonds on Employment: Early Evidence from Greece", Review of Economic Analysis, 12 (2), 235-253, Available at SSRN: https://ssrn.com/abstract=3644374

Sotirios Karagiannis (Contact Author)

University of Peloponnese -School of Management, Economics and Informatics ( email )

Thesi Sechi
Proin 4o Pedio Volis
Tripolis, Arcadia 22100
Greece
+302710230128 (Phone)
+302710230139 (Fax)

HOME PAGE: http://es.uop.gr

Dimitrios D. Thomakos

University of Athens, Department of Business Administration ( email )

Athens
Greece

HOME PAGE: http://ba.uoa.gr/

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