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IS INVESTING IN SAFETY DETRIMENTAL TO THE FINANCIAL HEALTH OF THE FIRM ?

Volume 7, Issue 4, August 2022    |    PP. 116-136    |PDF (350 K)|    Pub. Date: July 31, 2022
DOI: 10.54647/economics79325    10 Downloads     128 Views  

Author(s)
Nicolas PILUSO, Université Toulouse Paul Sabatier, France

Abstract
The article attempts to analyze the effects of an investment in safety of the production process on the dynamics of the distributed dividends. The aim is to answer the question of whether a risky industry has an incentive to invest in safety independently of the decrease in the probability of accidents generated by the safety measures. Although there is an obvious tension between safety and profitability, it appears that the firm may, in certain cases that we identify, have an interest in investing insofar as capital accumulation and dividend distribution are not durably affected by safety.

Keywords
investment. safety. risk. profit.

Cite this paper
Nicolas PILUSO, IS INVESTING IN SAFETY DETRIMENTAL TO THE FINANCIAL HEALTH OF THE FIRM ?, SCIREA Journal of Economics. Vol. 7 , No. 4 , 2022 , pp. 116 - 136 . https://doi.org/10.54647/economics79325

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