in The Review of Financial Studies
January 2014; p ublished online April 2013 .
Journal Article. Subjects: International Finance; Corporate Governance; Labour-Management Relations, Trade Unions, and Collective Bargaining; Labour Standards: National and International; Employment and Labour Law. 21505 words.
We show that wrongful discharge laws—laws that protect employees against unjust dismissal—spur innovation and new firm creation. Wrongful discharge laws, particularly those that prohibit...