Does Personal Financial Distress Affect Workers’ Performance? Evidence From Real Estate Agents

Chuan Lin, Michael J. Seiler, Liuming Yang

Research output: Journal PublicationArticlepeer-review

Abstract

This study examines how personal financial distress affects workers’ performance. Using the real estate brokerage industry as a setting and personal bankruptcy filing as a proxy for personal financial distress, we find that sale prices of agent-represented houses are lower in the year when agents are financially distressed than the non-distressed year, relative to the control group. We also find that the less desirable sales’ outcomes induced by distressed agents spill over to homeowners’ future buying activities. These owners subsequently buy houses with higher loan-to-value (LTV) ratios in lower-quality neighborhoods.

Original languageEnglish
JournalJournal of Real Estate Research
DOIs
Publication statusAccepted/In press - 2024

Keywords

  • Personal financial distress
  • real estate agents
  • spillover effects
  • workplace performance

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance
  • Urban Studies
  • Economics, Econometrics and Finance (miscellaneous)

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