Capital Structure Choice and Unionsation: An Empirical Investigation Using UK Micro Data

Posted: 3 Aug 1999

See all articles by Stephen J. Machin

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); London School of Economics & Political Science (LSE) - Department of Economics

Pasquale Scaramozzino

University of Rome II - Faculty of Economics; University of London - School of Oriental and African Studies (SOAS); University of London - Centre for Financial and Management Studies (CeFIMS)

Date Written: July 1994

Abstract

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

Machin, Stephen J. and Scaramozzino, Pasquale, Capital Structure Choice and Unionsation: An Empirical Investigation Using UK Micro Data (July 1994 ). Available at SSRN: https://ssrn.com/abstract=5862

Stephen J. Machin (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Pasquale Scaramozzino

University of Rome II - Faculty of Economics ( email )

Via Columbia n.2
Rome, 00100
Italy

University of London - School of Oriental and African Studies (SOAS) ( email )

Thornhaugh Street
Russell Square: College Buildings 541
London, WC1H 0XG
United Kingdom

University of London - Centre for Financial and Management Studies (CeFIMS)

Thornhaugh Street
London, WC1H 0XG
United Kingdom

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