Home > Research > Publications & Outputs > The (non-) effect of labor unionization on firm...

Electronic data

  • Unionization_Risk_accepted

    Rights statement: This is the author’s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 66, 2021 DOI: 10.1016/j.jcorpfin.2020.101816

    Accepted author manuscript, 952 KB, PDF document

    Available under license: CC BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License

Links

Text available via DOI:

View graph of relations

The (non-) effect of labor unionization on firm risk: Evidence from the options market

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published

Standard

The (non-) effect of labor unionization on firm risk : Evidence from the options market. / Ghaly, Mohamed; Kostakis, Alexandros; Stathopoulos, Konstantinos.

In: Journal of Corporate Finance, Vol. 66, 101816, 01.02.2021.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Harvard

APA

Vancouver

Ghaly M, Kostakis A, Stathopoulos K. The (non-) effect of labor unionization on firm risk: Evidence from the options market. Journal of Corporate Finance. 2021 Feb 1;66:101816. Epub 2020 Dec 7. doi: 10.1016/j.jcorpfin.2020.101816

Author

Ghaly, Mohamed ; Kostakis, Alexandros ; Stathopoulos, Konstantinos. / The (non-) effect of labor unionization on firm risk : Evidence from the options market. In: Journal of Corporate Finance. 2021 ; Vol. 66.

Bibtex

@article{94acf8f62d3d4de984d2b5ef4a243fa6,
title = "The (non-) effect of labor unionization on firm risk: Evidence from the options market",
abstract = "Labor unionization has no causal effect on firm risk. Using a regression discontinuity design to study the impact of labor union elections on option-implied firm risk, we find that unionization per se does not affect investor perceptions about firm price, tail, or variance risk. This finding is robust to studying very short (5-trading day) and long (up to 2-year) windows around the elections. Moreover, there is no unionization effect on firm risk either in subsets of firms facing strong union bargaining power, or with characteristics that prior literature identifies as important determinants of the effect of unionization on firm outcomes.",
keywords = "Unionization, Labor power, Option-implied firm risk, Regression discontinuity design",
author = "Mohamed Ghaly and Alexandros Kostakis and Konstantinos Stathopoulos",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 66, 2021 DOI: 10.1016/j.jcorpfin.2020.101816",
year = "2021",
month = feb,
day = "1",
doi = "10.1016/j.jcorpfin.2020.101816",
language = "English",
volume = "66",
journal = "Journal of Corporate Finance",
issn = "0929-1199",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - The (non-) effect of labor unionization on firm risk

T2 - Evidence from the options market

AU - Ghaly, Mohamed

AU - Kostakis, Alexandros

AU - Stathopoulos, Konstantinos

N1 - This is the author’s version of a work that was accepted for publication in Journal of Corporate Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Corporate Finance, 66, 2021 DOI: 10.1016/j.jcorpfin.2020.101816

PY - 2021/2/1

Y1 - 2021/2/1

N2 - Labor unionization has no causal effect on firm risk. Using a regression discontinuity design to study the impact of labor union elections on option-implied firm risk, we find that unionization per se does not affect investor perceptions about firm price, tail, or variance risk. This finding is robust to studying very short (5-trading day) and long (up to 2-year) windows around the elections. Moreover, there is no unionization effect on firm risk either in subsets of firms facing strong union bargaining power, or with characteristics that prior literature identifies as important determinants of the effect of unionization on firm outcomes.

AB - Labor unionization has no causal effect on firm risk. Using a regression discontinuity design to study the impact of labor union elections on option-implied firm risk, we find that unionization per se does not affect investor perceptions about firm price, tail, or variance risk. This finding is robust to studying very short (5-trading day) and long (up to 2-year) windows around the elections. Moreover, there is no unionization effect on firm risk either in subsets of firms facing strong union bargaining power, or with characteristics that prior literature identifies as important determinants of the effect of unionization on firm outcomes.

KW - Unionization

KW - Labor power

KW - Option-implied firm risk

KW - Regression discontinuity design

U2 - 10.1016/j.jcorpfin.2020.101816

DO - 10.1016/j.jcorpfin.2020.101816

M3 - Journal article

VL - 66

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

M1 - 101816

ER -