Labor litigation involves disputes between a firm and its employees over the latter's rights and obligations, and it may increase the uncertainty of firms' business operations and thus affect their financial decisions. Using textual analysis of judicial documents on labor and personnel disputes obtained from a specialized dataset, we find that labor litigation prompts firms to increase their cash holdings. Further analysis indicates that this effect mainly occurs in firms with higher labor adjustment costs, in regions where labor regulations and labor protection are strongly enforced, and in firms with high corporate social responsibility and high financial constraints. Finally, we find that increasing corporate cash holdings after labor litigation improves both firm performance and the market value of cash.

中文翻译：

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劳动诉讼与公司现金持有：从司法文件的文本分析中获得见解


劳动诉讼涉及公司与其员工之间关于后者的权利和义务的争议，它可能增加公司业务运营的不确定性，从而影响其财务决策。通过对从专业数据集获得的劳动人事争议司法文件进行文本分析，我们发现劳动诉讼促使公司增加现金持有量。进一步分析表明，这种影响主要发生在劳动力调整成本较高的企业、劳动法规和劳动保护执行力度强的地区以及企业社会责任感强、财务约束力强的企业。最后，我们发现，在劳动诉讼后增加公司现金持有量可以提高公司绩效和现金的市场价值。