The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is v...The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is volatility,the past performance of which is among the principal indicators of wage rigidity.In firms whose current performance is on the upswing,the greater the volatility in past performance,the smaller the elasticity ratio and the more acute the upward rigidity;the more stable past performance,the larger the elasticity ratio and the more acute the upward elasticity.In firms in which current performance is declining,greater past performance volatility leads to a larger elasticity ratio and more acute downward rigidity,whereas more stable such performance leads to a smaller elasticity ratio and more acute downward rigidity.展开更多
基金supported by the National Natural Science Foundation (grant no. 70602011)the National Social Science Foundation (grant no. 08CJY009)the IAPHD Project of Nanjing University
文摘The management of future financial risk on the part of managers and changes in firm finances are two of the fundamental reasons for upward and downward rigidity of wages.The proxy variable for firm financial risk is volatility,the past performance of which is among the principal indicators of wage rigidity.In firms whose current performance is on the upswing,the greater the volatility in past performance,the smaller the elasticity ratio and the more acute the upward rigidity;the more stable past performance,the larger the elasticity ratio and the more acute the upward elasticity.In firms in which current performance is declining,greater past performance volatility leads to a larger elasticity ratio and more acute downward rigidity,whereas more stable such performance leads to a smaller elasticity ratio and more acute downward rigidity.
