Do labor unions affect firm payout policy?: Operating leverage and rent extraction effects

• Published in: Journal of corporate finance (Amsterdam, Netherlands) Vol. 41; pp. 156 - 178
• Main Author: Chino, Atsushi
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.12.2016
• Subjects: Labor unions; Operating leverage; Payout policy; Rent extraction; Rent extraction; Payout policy; Operating leverage; Labor unions

While previous literature documents weak effects of unionization on payout policy on average, we find that this average relationship hides significant heterogeneous effects of unionization on payouts across firms that depend on firm profitability. The effect of unionization on payouts is negative fo...