Does External Credit Have a Different Impact on Staff Welfare Since COVID-19?
21 Pages Posted: 27 Dec 2022
Date Written: November 30, 2022
Abstract
An organization's finance structure and source of funding can have a significant impact on its employment and staff welfare decisions. Our study illustrates the economic importance of this channel by demonstrating how firms’ financial health and liquidity constrain employment decisions based on Indian context. As a part of our main analysis, we use the ``Debt-Maturity'' concept in combination with baseline regression analysis in order to examine the relationship between external credit and staff welfare decisions. We also analyzed pre and post-covid 19 pandemic data to examine how variables correlate at different times under normal and abnormal economic conditions. Based on the results, the availability and maturity of external credit have an important impact on the employment and welfare decisions at the firm level as well as on overall unemployment rates in both periods.
Keywords: finance, staff welfare
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