Occupational accidents and financial performance: Fatalities and injuries in JSE-listed high-risk firms

Occupational injuries and fatalities pose a serious global challenge in high-risk firms, with potential consequences for companies' operational stability and financial performance.This study employs panel data derived from annual reports to examine the association between injury frequency rates and firm financial performance among 58 high-risk firms listed on the Johannesburg Stock Exchange over the period 2015-2023, while controlling for firm size, firm age, and board independence.Using pooled OLS with year fixed effects and robust standard errors, the results show that the injury frequency rate is negatively and statistically associated with earnings per share, suggesting that occupational injuries lead to immediate operational disruptions and compensation costs that reduce firm profitability in the short run.However, study underscores the limitations of short-term accounting indicators in explaining delayed reputational, legal and regulatory economic costs of fatalities incidents, especially in larger and well-resourced companies where such costs may be deferred.The findings provide actionable insights for firm managers to implement occupational safety practices that prevent on-site accidents without anticipating immediate financial benefit.Policymakers should encourage investment in workplace safety through tax incentives for firms demonstrating strong workplace safety performance.This research suggests enhanced regulatory oversight and monitoring of occupational health and safety management systems (OHSMS) in high-risk companies as short-term profitability does not seem to encourage safe working conditions.