Olga Kuzmina’s paper “Employment Flexibility and Capital Structure: Evidence from a Natural Experiment” was selected by the Editor-in-Chief of Management Science as one of the Featured Articles for the September 2023 issue.
Using a unique panel data set of manufacturing firms in Spain in 1994–2006, NES Professor shows that the use of flexible (shorter and cheaper-to-fire) employment contracts promotes debt financing. She also provides evidence that employment flexibility increases firm performance for firms that benefit most from operating leverage reductions and depend more on external financing. The results of the research demonstrate how management can use heterogeneous labor contracts to improve firm outcomes.
Management Science is a scholarly journal that publishes scientific research on the practice of management. Its scope covers all aspects of management related to strategy, entrepreneurship, innovation, information technology, and organizations as well as all functional areas of business, such as accounting, finance, marketing, and operations. Management Science is listed by the Financial Times among the top 50 Journals in the FT Research Rank, included in the global academic research and business school rankings.
We congratulate Olga Kuzmina on this success and wish her new academic achievements!