LABOR UNIONS AND CORPORATE CASH HOLDINGS: EVIDENCE FROM INTERNATIONAL DATA

Zhenxu Tong, Hui Huang

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Firms in countries with higher union membership have less corporate cash holdings. This negative relation is stronger for firms in countries with weak employment protection legislation, firms in countries with a high degree of labor bargaining centralization, and financially constrained firms. Moreover, the market value of corporate cash holdings is lower for firms in countries with high union membership. The number of strikes and lockouts is higher in countries with more corporate cash holdings. We conclude that firms strategically choose corporate cash holdings to gain a bargaining position with labor in an international setting.
Original languageEnglish
Pages (from-to)325-350
JournalJournal of Financial Research
Volume41
Issue number3
Early online date22 May 2018
DOIs
Publication statusPublished - 1 Sep 2018

Fingerprint Dive into the research topics of 'LABOR UNIONS AND CORPORATE CASH HOLDINGS: EVIDENCE FROM INTERNATIONAL DATA'. Together they form a unique fingerprint.

  • Profiles

    No photo of Zhenxu Tong

    Zhenxu Tong

    Person: Academic

    Cite this