@article{3f940e848b87467189ceac4b9d5216f7,
title = "The Economic Consequences of Labor Unionization: Evidence from Stock Price Crash Risk",
abstract = "This study investigates the impact of labor unionization on stock price crash risk. We find that labor unionization is negatively associated with stock price crash risk. Such negative relation is more pronounced when firms can intimate more credible evidence on unfavorable prospects and when firms face more powerful labor unions. Our findings are consistent with the notion that firms take strategic actions to reduce the bargaining advantages enjoyed by labor unions and that labor unions force firms to take less risky investments and discontinue underperformed projects more timely, which leads to lower stock price crash risk.",
keywords = "Bargaining position, Crash risk, Labor unions, Risk aversion",
author = "Jun Chen and Tong, {Jamie Y.} and Wenming WANG and Feida Zhang",
note = "Funding Information: We appreciate the insightful comments from Wenlan Zhang and the participants at the 6th World Business Ethics Forum. We also thank Chuancai Zhang for his excellent research assistance. Jun Chen and Feida Zhang acknowledge financial support from the National Natural Science Foundation of China (Grant numbers: NSFC-71572181 and NSFC-71332004). Feida Zhang and Jamie Tong acknowledge the financial support from the MOE (Ministry of Education in China) Project of Humanities and Social Sciences (Grant No. 17YJA790012) and National Social Science Foundation of China (Grant No. 17BGL067). All authors make equal contribution to this study. Funding Information: Acknowledgements We appreciate the insightful comments from Wenlan Zhang and the participants at the 6th World Business Ethics Forum. We also thank Chuancai Zhang for his excellent research assistance. Jun Chen and Feida Zhang acknowledge financial support from the National Natural Science Foundation of China (Grant numbers: NSFC-71572181 and NSFC-71332004). Feida Zhang and Jamie Tong acknowledge the financial support from the MOE (Ministry of Education in China) Project of Humanities and Social Sciences (Grant No. 17YJA790012) and National Social Science Foundation of China (Grant No. 17BGL067). All authors make equal contribution to this study.",
year = "2019",
month = jul,
day = "15",
doi = "10.1007/s10551-017-3686-0",
language = "English",
volume = "157",
pages = "775--796",
journal = "Journal of Business Ethics",
issn = "0167-4544",
publisher = "Springer Netherlands",
number = "3",
}