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Revealing the impact of the inclusion of disabled employees on firm performance: the moderating role of firm characteristics

Lips, P.A. (2018) Revealing the impact of the inclusion of disabled employees on firm performance: the moderating role of firm characteristics.

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Abstract:In this study, the relationship between inclusion of disabled employees and financial firm performance is examined. By integrating prior research, a model is developed that theorizes the interaction between inclusion, financial firm performance and firm characteristics. This model is tested using a matched sample of 322 companies. The results indicate that organizations without disabled workers outperform firms that include disabled employees. Moreover, a negative effect on financial firm performance appeared when including employees with disabilities. This association appears to be dependent on firm characteristics, which are the age and the family character of a firm, implying that in small or nonfamily firms the relationship is less negative. For the other firm characteristic, the age of a firm, no significant interaction was found. In general, the results are remarkable, implying that it is not, directly or indirectly, attractive for firms to hire disabled employees. This study suggests that the incentives given by the Dutch government to firms that include disabled employees are not enough to compensate for the resulting loss of income.
Item Type:Essay (Master)
Clients:
TNO, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/74537
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