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The effect of labor unionization on corporate investment efficiency

Posted on:2016-04-29Degree:M.SType:Thesis
University:University of Massachusetts BostonCandidate:Zhang, YuFull Text:PDF
GTID:2476390017476483Subject:Accounting
Abstract/Summary:
This paper examines the relationship between labor unionization rates and corporate investment efficiency using 55,300 firm-year observations from 1983--2002. I find evidence that labor unionization rates are negatively associated with underinvestment and overinvestment, which suggests that labor unions can improve investment efficiency. I also find that labor unions and financial reporting quality are complementary in improving investment efficiency.
Keywords/Search Tags:Investment efficiency, Labor unionization, Labor unions
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