As a safety professional, you’re aware of the high cost of worker injuries. But you may be surprised to learn about the relationship between a company’s financial status and on-the-job injury rates. Read more to learn about this intriguing link.
The cost associated with the more than 3.5 million workplace injuries and illnesses each year is estimated at $250 billion. Now a new study from the University of Texas at Dallas looks at the ways corporate financing impacts workplace safety. Using injury data from the Bureau of Labor Statistics, researchers examined the sensitivity of injury rates to a firm’s available financial resources. Among findings:
- Injury rates increase after debt increases, and with negative cash flow.
- Injury rates decrease with positive cash flow.
- Firm value decreases with an increase in injury rates.