Capital Structure Choice and Unionsation: An Empirical Investigation Using UK Micro Data
Posted: 3 Aug 1999
Date Written: July 1994
In this paper we consider the relationship between the firm's choice of capital structure and the unionisation status of the labour force. Empirical estimates of Tobit models explaining the firm level debt-equity ratio betwee 1986 and 1990 lend support to the view that unionisation is associated with lower leverage. This finding is robust the analysis of empirical models based on total debt or short term debt alone. Estimations of changes in this relationship over time point to an increasingly negative impact as the decade progressed.
JEL Classification: G3, J5
Suggested Citation: Suggested Citation