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Institutional investors and mispricing of unionized firms

Author

Listed:
  • Viktoriya Lantushenko
  • Dalia Marciukaityte
  • Samuel H. Szewczyk

Abstract

We examine investment by different types of institutional investors in firms with strong labor unions. We find that hedge funds own a lower percentage of shares in these firms than in other firms. In contrast, passive institutional investors and institutional investors as a group own a higher percentage. Our tests suggest that the relation between unionization and hedge fund ownership is causal: When union power changes in a firm, hedge fund ownership changes in the opposite direction. Instead, passive investor holdings in unionized firms seem to be driven by other firm characteristics.

Suggested Citation

  • Viktoriya Lantushenko & Dalia Marciukaityte & Samuel H. Szewczyk, 2024. "Institutional investors and mispricing of unionized firms," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 47(2), pages 249-274, June.
    • Handle: RePEc:bla:jfnres:v:47:y:2024:i:2:p:249-274
    DOI: 10.1111/jfir.12367
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    References listed on IDEAS

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