学术活动

Topic:

Mind the Gap: Employee Disclosures during Contract Renegotiations

Time&Date: 

10:30 am - 12:00 pm, November 7, 2024 (Thursday)

Venue

Room 103, Conference Complex Ⅱ

Speaker:

Prof. Rencheng Wang (Singapore Management University)

We find that firms receive lower Glassdoor ratings in the months leading up to the expiration of labor contracts. We interpret this finding as evidence that labor contract renegotiations heighten employees’ awareness of the gaps between their expected benefits and those provided by their firms, and this increased awareness of the benefit gaps likely prompts employees to share negative information on social media. The decline in Glassdoor ratings is more pronounced when labor unions and peer firms strategically amplify employees’ awareness, though it is mitigated when firms engaged in renegotiations strategically disclose information to reduce employees’ awareness. Importantly, these lower ratings during renegotiations are informative of firms’ future workplace and financial performance, and are associated with increased stock liquidity and return non-synchronicity. Overall, our findings suggest that heightened employee awareness of benefit gaps not only fosters employee disclosures on social media but also enriches firms’ information environments.

Biography:

Rencheng Wang joined SMU in 2019. He has previously taught at the University of Queensland and University of Melbourne in Australia. He received his Ph.D. from Hong Kong University of Science and Technology. Rencheng has a broad range of interests in research at the intersection of accounting and finance. His works have been published in the Journal of Accounting Research, Journal of Accounting and Economics, and The Accounting Review. Learn more about Rencheng at https://ddei3-0-ctp.asiainfo-sec.com:443/wis/clicktime/v1/query?url=https%3a%2f%2facrcwang.github.io%2f&umid=DA9B15FF-25A4-1906-AD82-FA40C8263F3C&auth=dc85afdffa75f9bc5357f32e37bf917c5d89a957-3dd72130aa3c0db935b16ebb59f2b41179c1342b.