Do Labor Unions Affect a Firm’S Payout Policy? : Operating Leverage Versus Rent Extraction

2012 ◽  
Author(s):  
Atsushi Chino
Keyword(s):  
Labor Unions ◽  
Payout Policy ◽  
Rent Extraction ◽  
Operating Leverage

Labor Unions and Product Quality Failures

2021 ◽  
Author(s):  
Omesh Kini ◽  
Mo Shen ◽  
Jaideep Shenoy ◽  
Venkat Subramaniam
Keyword(s):  
Product Quality ◽  
Labor Unions ◽  
Product Recalls ◽  
Employee Morale ◽  
Product Recall ◽  
Quality Outcomes ◽  
Panel Regressions ◽  
Broad Cross Section ◽  
Operating Leverage ◽  
The Impact

In this paper, we study the impact of labor unions on product quality failures. We use a product recall as our measure of quality failure because it is an objective metric that is applicable to a broad cross-section of industries. Our analysis employs a union panel setting and close union elections in a regression discontinuity design framework to overcome identification issues. In the panel regressions, we find that firms that are unionized and those that have higher unionization rates experience a greater frequency of quality failures. The results obtain even at a more granular establishment level in a subsample in which we can identify the manufacturing establishment associated with the recalled product. When comparing firms in close elections, we find that firms with close union wins are followed by significantly worse product quality outcomes than those with close union losses. These results are amplified in non–right-to-work states, where unions have a relatively greater influence on the workforce. We find that unionization increases firms’ costs and operating leverage and, consequently, crowds out investments that potentially impact quality. We also find some suggestive evidence that unions may compromise quality by hurting employee morale and by resisting technological upgrades in the firm. Overall, our results suggest that unions have an adverse impact on product recalls, and thus, product quality is an important dimension along which unions impact businesses. This paper was accepted by Gustavo Manso, finance.

Labor Unions, Operating Flexibility, and the Cost of Equity

2010 ◽  
Vol 46 (1) ◽  
pp. 25-58 ◽  
Author(s):  
Huafeng Jason Chen ◽  
Marcin Kacperczyk ◽  
Hernán Ortiz-Molina
Keyword(s):  
Labor Unions ◽  
Firm Characteristics ◽  
Cost Of Equity ◽  
Omitted Variables ◽  
The Cost ◽  
Operating Leverage

AbstractWe study whether the constraints on firms’ operations imposed by labor unions affect firms’ costs of equity. The cost of equity is significantly higher for firms in more unionized industries. This effect holds after controlling for several industry and firm characteristics, is robust to endogeneity concerns, and is not driven by omitted variables. Moreover, the unionization premium is stronger when unions face a more favorable bargaining environment and is highly countercyclical. Unionization is also positively related to various measures of operating leverage. Our findings suggest that labor unions increase firms’ costs of equity by decreasing firms’ operating flexibility.

Dental faculty and labor unions: the perils of passivity

1977 ◽  
Vol 41 (11) ◽  
pp. 660-665
Author(s):  
JH Oaks ◽  
DM Fox ◽  
JJ Valter
Keyword(s):  
Labor Unions

Managerial attitudes toward labor unions in a southern city.

1968 ◽  
Vol 52 (6, Pt.1) ◽  
pp. 447-453 ◽  
Author(s):  
M. Alsikafi ◽  
Walfrid J. Jokinen ◽  
S. Lee Spray ◽  
George S. Tracy
Keyword(s):  
Labor Unions ◽  
Southern City

Labor Unions Banned in Japanese Arsenals

1936 ◽  
Vol 5 (24) ◽  
pp. 261-261
Author(s):  
M. S. F.
Keyword(s):  
Labor Unions

Payout Policy in the 21st Century

CFA Digest ◽  
2006 ◽  
Vol 36 (1) ◽  
pp. 18-19
Author(s):  
Spencer L. Klein
Keyword(s):  
21St Century ◽  
Payout Policy

Multi-component complex ores: Special aspects of using ad valorem and specific mineral extraction tax rates

2020 ◽  
Vol 26 (6) ◽  
pp. 1297-1314
Author(s):  
T.A. Loginova
Keyword(s):  
Krasnoyarsk Krai ◽  
Tax Rates ◽  
Russian Regions ◽  
Rent Extraction ◽  
Effective Tax Rate ◽  
Mineral Extraction ◽  
Tax Rate ◽  
Significant Differentiation ◽  
The Russian Federation ◽  
Ad Valorem

Subject. This article discusses the issues related to the taxation for multi-component complex ores and commercial components using ad valorem and specific mineral extraction tax (MET) rates. Objectives. The article aims to assess some results of the application of specific MET rates in the Krasnoyarsk Krai and ad valorem rates in other subjects of the Russian Federation, taking into account the specifics of the current taxation procedure for multi-component complex ores and their commercial components. Methods. For the study, I used a comparative analysis, synthesis, and the method of extrapolation. Results. The article shows that the change in the type of MET rate for multi-component complex ores and commercial components has led to a significant increase in the effective tax rate. This led to an increase in the corresponding MET revenues in the Krasnoyarsk Krai. The article also substantiates that the introduction of specific rates in other Russian regions requires a significant differentiation of specific MET rates. However, this is risk-bearing concerning unfair distribution of the tax burden and the complexity of tax administration. Conclusions. The issue of identifying multi-component complex ores and their commercial components is controversial. Extending specific MET rates to other regions may complicate the mechanism of rent extraction.

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