Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146741
Authors: 
Choi, Chil Sun
Sohn, Pando
Seo, Ji-Yong
Year of Publication: 
2016
Citation: 
[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 43 [Year:] 2016 [Issue:] 1 [Pages:] 53-69
Abstract: 
This study examines whether a firm's leverage can be used strategically to improve its bargaining position with an organized labor union using samples of non-financial firms listed on the Korean Stock Exchange (KSE) from 1999 to 2013. Through empirical testing, we find that the portfolio with the lowest union labor coverage has the lowest leverage, while the portfolio with the highest union labor coverage has the highest leverage. We also find that collective bargaining power positively affects leverage through the regression of leverage on the bargaining power of the labor union, regardless of the analysis methods, such as static and dynamic models. With a robustness test model that used the industry adjusted labor union concentration index (IUCI), we obtain evidence that collective bargaining power positively influences leverage, which corresponds with the regression results. In conclusion, we suggest the existence of evidence demonstrating that variables related to labor unions affect leverage levels, as suggested in previous studies.
Subjects: 
leverage
bargaining position
union labor coverage
static and dynamic models
JEL: 
G30
G32
Document Type: 
Article

Files in This Item:
File
Size
702.56 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.