Does workforce affect technical efficiency? A Stochastic Frontier Approach across industries

Does workforce affect technical efficiency? A Stochastic Frontier Approach across industries | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Does workforce affect technical efficiency? A Stochastic Frontier Approach across industries Carlos Manuel Pinheiro, Paulo Pereira Silva This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4469013/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract Sustainability has become the new normal for value creation in the long haul, and is on the top of every board’s agenda. We assess the relationship between the workforce and a firm’s output gap justified by systematic inefficiency. To do so we apply a stochastic frontier model to a large sample of U.S. listed firms, across industries, spanning 2005 to 2019, focusing on measures of companies’ management commitment and effectiveness in addressing their workforce job conditions and well-being. Our results reveal an economically sizable and statistically significant positive association between technical efficiency and workforce-wellbeing. Firm inefficiency is explained by firm specific factors and is a decreasing (increasing) function of size and external monitoring (leverage, blockholdings and foreign sales). It is mitigated by employee-oriented practices and external governance mechanisms, as well as market surveillance. The association between workforce and technical efficiency is non-linear and varies across industry sectors. Our results have policy implications and should interest managers and stakeholders in general. JEL Classification: C73; G14, G23, G34 Stochastic Frontier Technical Efficiency Corporate Social Responsibility Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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