Journal article
The Economic Consequences of Labor Unionization: Evidence from Stock Price Crash Risk
Journal of Business Ethics, Vol.157(3), pp.775-796
2017
Abstract
This study investigates the impact of labor unionization on stock price crash risk. We find that labor unionization is negatively associated with stock price crash risk. Such negative relation is more pronounced when firms can intimate more credible evidence on unfavorable prospects and when firms face more powerful labor unions. Our findings are consistent with the notion that firms take strategic actions to reduce the bargaining advantages enjoyed by labor unions and that labor unions force firms to take less risky investments and discontinue underperformed projects more timely, which leads to lower stock price crash risk.
Details
- Title
- The Economic Consequences of Labor Unionization: Evidence from Stock Price Crash Risk
- Authors/Creators
- J. Chen (Author/Creator) - Zhejiang UniversityJ.Y. Tong (Author/Creator) - The University of Western AustraliaW. Wang (Author/Creator) - Hong Kong Baptist UniversityF. Zhang (Author/Creator) - Murdoch University
- Publication Details
- Journal of Business Ethics, Vol.157(3), pp.775-796
- Publisher
- Springer Netherlands
- Identifiers
- 991005544120207891
- Copyright
- © 2017 Springer Science+Business Media B.V.
- Murdoch Affiliation
- School of Business and Governance
- Language
- English
- Resource Type
- Journal article
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- Collaboration types
- Domestic collaboration
- International collaboration
- Citation topics
- 6 Social Sciences
- 6.10 Economics
- 6.10.63 Corporate Governance
- Web Of Science research areas
- Business
- Ethics
- ESI research areas
- Economics & Business