The Effect of Changes in Public Union Bargaining Rights on Bank Values
Lee J. Cohen
University of Georgia - Department of Finance
Marcia Millon Cornett
Bentley University - Department of Finance
Boston College - Department of Finance
August 8, 2012
This study provides an empirical analysis of the impact of Wisconsin and Ohio anti-union legislation on values of banks in Wisconsin and Ohio, banks in other states in which anti-union measures were being considered as Wisconsin and Ohio went through its legislative process, and all publicly traded U.S. banks. Successful passage of this type of legislation accommodates states’ budgets. We find that banks doing business in Wisconsin and Ohio experience positive (negative) stock price reactions to announcements that indicate an increased (a decreased) probability of anti-union legislation. The stock price reactions are positively related to the extent to which banks operate in Wisconsin and Ohio. Stock price reactions are rarely evident for banks in the other 13 states that were considering anti-union legislation during the period of analysis.
Number of Pages in PDF File: 45working papers series
Date posted: October 10, 2012
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