Information Quality and Workplace Safety

58 Pages Posted: 2 Mar 2021

See all articles by Ole-Kristian Hope

Ole-Kristian Hope

University of Toronto - Rotman School of Management

Danye Wang

University of Iowa

Heng Yue

Singapore Management University - School of Accountancy

Jianyu Zhao

Central University of Finance and Economics

Date Written: January 8, 2021

Abstract

This paper examines the effect of internal information quality on workplace safety. Using establishment-level data on workplace injuries from the Occupational Safety and Health Administration (OSHA) and employing a strict fixed-effects structure, we show that higher information quality is associated with significantly lower work-related injury rates. Further investigation reveals that the effect is stronger when more decision rights reside in headquarters, weaker when employees have greater bargaining power, and weaker when firms are subject to financial constraints. Our findings are robust to the use of two plausibly exogenous shocks and other robustness checks. Our study suggests an important economic consequence of information quality not examined by prior literature.

Keywords: Information quality, Workplace safety, Employee welfare, Management accounting

JEL Classification: G30, G38, M10, M40, M41

Suggested Citation

Hope, Ole-Kristian and Wang, Danye and Yue, Heng and Zhao, Jianyu, Information Quality and Workplace Safety (January 8, 2021). Available at SSRN: https://ssrn.com/abstract=3762656 or http://dx.doi.org/10.2139/ssrn.3762656

Ole-Kristian Hope (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

HOME PAGE: http://www.rotman.utoronto.ca/FacultyAndResearch/Faculty/FacultyBios/Hope.aspx

Danye Wang

University of Iowa ( email )

341 Schaeffer Hall
Iowa City, IA 52242-1097
United States

Heng Yue

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore 178900
Singapore

Jianyu Zhao

Central University of Finance and Economics ( email )

39 South College Road
Haidian District,Beijing, P.R.China
Beijing, Beijing 100081
China

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