Date of Award
5-2015
Degree Type
Thesis
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Tyler Brough
Committee
Tyler Brough
Committee
Jason Smith
Committee
Jared DeLisle
Abstract
This paper replicates the paper named Human capital, capital structure, and employee pay: An empirical analysis written by Thomas J. Chemmanur, Yingmei Cheng, and Tianming Zhang in 2013. In this paper, I examine the effect of market leverage on labor expenses to prove the predictions of Titman (1984) and Berk, Stanton, and Zechner (2010). Through the OLS regression analysis, I find that market leverage has a significantly positive effect on total, cash, equity-based compensation of chief executive officers (CEOs). So an increase market leverage will always lead to an incremental labor cost, and in fact labor costs will limit the use of debt to some extent.
Recommended Citation
Ke, Yiling, "Human Capital, Capital Structure, and Employee Pay: An Empirical Analysis a Replicated Confirmation" (2015). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 671.
https://digitalcommons.usu.edu/gradreports/671
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