This study investigates the influence of bank interventions following breaches of debt covenants on workplace safety. Using a regression discontinuity design, we find robust evidence indicating a substantial decrease in employee injuries after covenant violations. Our channel analysis reveals that the impact of bank interventions is more pronounced when banks perform well in ESG-related employee relationships and take on less risk. Furthermore, the influence of bank interventions is stronger when banks have considerable control over firms and when employees have strong bargaining power. Our findings demonstrate that creditors play an active role in enhancing workplace safety, leading to improved employee welfare. The implications of our research highlight the potential for financial institutions to contribute to socially responsible practices and promote sustainable and safe working environments.

中文翻译：

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从债务违约到员工安全：银行干预的隐藏力量


本研究调查了违反债务契约后银行干预对工作场所安全的影响。使用断点回归设计，我们发现强有力的证据表明，违反契约后员工受伤人数大幅减少。我们的渠道分析表明，当银行在 ESG 相关员工关系中表现良好且承担的风险较小时，银行干预的影响更为明显。此外，当银行对企业拥有相当大的控制权并且员工拥有强大的议价能力时，银行干预的影响力就会更强。我们的研究结果表明，债权人在加强工作场所安全方面发挥着积极作用，从而改善了员工福利。我们研究的意义凸显了金融机构为社会责任实践做出贡献并促进可持续和安全工作环境的潜力。