Employee treatment and discontinued operations

Abstract

Purpose

The authors investigate the relation between employee treatment and the likelihood of discontinuing business operations.

Design/methodology/approach

The authors use regression analysis to investigate the relation between employee treatment and the likelihood of discontinuing business operations.

Findings

The authors find a significant negative relation between employee treatment and the likelihood of discontinuing business operations, suggesting that firms with better employee treatment are less likely to discontinue operations.

Originality/value

This study contributes to two distinctive steams of research: discontinued operations in accounting literature and employee welfare in human resources management literature.

Citation

Leonard, L. and Sun, L. (2022), "Employee treatment and discontinued operations", Asian Review of Accounting, Vol. 30 No. 2, pp. 207-232. https://doi.org/10.1108/ARA-09-2021-0170