Abstract

http://ssrn.com/abstract=1907940
 
 

Citations (1)



 


 



Leverage and the Interaction between Firms and Non-Financial Stakeholders: Evidence from Contract Negotiations and Union Strikes


Alessio Saretto


University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics

Brett W. Myers


Texas Tech, Rawls College of Business

August 10, 2011


Abstract:     
We use contract negotiation data to study how leverage affects the interaction between firms and an important non-financial stakeholder, labor unions. Consistent with the idea that leverage diminishes the bargaining position of labor, we find that unions are less likely to strike when a firm has high leverage or increases leverage prior to a contract negotiation. Consistent with the idea that firms intentionally use leverage to improve their bargaining position, we find that firms facing a high likelihood of a strike increase their leverage, as do firms that have recently experienced a strike.

Number of Pages in PDF File: 47

Keywords: leverage, non-financial stakeholders, contract negotiations, union strikes

JEL Classification: G32, J52

working papers series





Download This Paper

Date posted: August 11, 2011  

Suggested Citation

Saretto, Alessio and Myers, Brett W., Leverage and the Interaction between Firms and Non-Financial Stakeholders: Evidence from Contract Negotiations and Union Strikes (August 10, 2011). Available at SSRN: http://ssrn.com/abstract=1907940 or http://dx.doi.org/10.2139/ssrn.1907940

Contact Information

Alessio Saretto (Contact Author)
University of Texas at Dallas - School of Management - Department of Finance & Managerial Economics ( email )
800 Campbell Road
SM 31
Richardson, TX 75080
United States
972-883-5907 (Phone)
HOME PAGE: http://www.utdallas.edu/~axs125732
Brett W. Myers
Texas Tech, Rawls College of Business ( email )
Lubbock, TX 79407
United States
Feedback to SSRN


Paper statistics
Abstract Views: 626
Downloads: 118
Download Rank: 141,491
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.313 seconds