Ghosh, Saibal (2008): Leverage and trade unionism in Indian industry: An empirical note. Published in: Indian Journal of Industrial Relations , Vol. 46, No. 2 (October 2010): pp. 194-200.
Download (173kB) | Preview
Market power in the hands of a supplier- such as a labor union - affects an industry’s capital structure. Using panel data techniques for 1992-2004, this note shows that industries indeed appear to employ financial leverage strategically to influence collective bargaining decisions. The estimates imply that strategic incentives from input markets have a substantial impact on financing decisions
|Item Type:||MPRA Paper|
|Original Title:||Leverage and trade unionism in Indian industry: An empirical note|
|Keywords:||capital structure; collective bargaining; trade unionism; inventories india|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects
|Depositing User:||Saibal Ghosh|
|Date Deposited:||04. Nov 2010 18:28|
|Last Modified:||31. Dec 2015 01:53|
Baldwin, C. (1983). Productivity and labor unions: an application of the theory of self-enforcing contracts. Journal of Business 58, 155-185.
Bronars, S., and D.Deere (1991). The threat of unionization, the use of debt and the preservation of shareholder wealth. Quarterly Journal of Economics 106, 231-254.
Cavanaugh, J. and J.Garen (1997). Asset specificity, unionization and the firm’s use of debt. Managerial and Decision Economics 18, 255-69.
Clark, I. (1991). Inventory accumulation, employment and wages. Economic Journal 101, 630-41.
Coles, M. and E.Smith (1998). Strategic bargaining with firm inventories. Journal of Economic Dynamics and Control
Dasgupta, S. and K.Sengupta (1993). Sunk investment, bargaining and the choice of capital structure. International Economic Review 34, 203-20.
Economic and Political Weekly Research Foundation (2002). Annual Survey of Industries, Mumbai.
Ghosh, S. (2007). Firm size and bank debt use: Indian evidence. Small Business Economics 29, 15-23.
Government of India, Indian Labour Yearbook (various years). Labour Bureau: Shimla.
Grout, P. (1983). Investment and wages in the absence of binding contracts: a Nash bargaining approach. Econometrica 52, 449-460.