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Leverage and trade unionism in Indian industry: An empirical note

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  • Ghosh, Saibal

Abstract

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

Suggested Citation

  • Ghosh, Saibal, 2008. "Leverage and trade unionism in Indian industry: An empirical note," MPRA Paper 26400, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26400
    as

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    File URL: https://mpra.ub.uni-muenchen.de/26400/1/MPRA_paper_26400.pdf
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    References listed on IDEAS

    as
    1. Saibal Ghosh, 2007. "Bank Debt Use and Firm Size: Indian Evidence," Small Business Economics, Springer, vol. 29(1), pages 15-23, June.
    2. Baldwin, Carliss Y, 1983. "Productivity and Labor Unions: An Application of the Theory of Self-Enforcing Contracts," The Journal of Business, University of Chicago Press, vol. 56(2), pages 155-185, April.
    3. Clark, Simon, 1991. "Inventory Accumulation, Wages, and Employment," Economic Journal, Royal Economic Society, vol. 101(405), pages 230-238, March.
    4. Stephen G. Bronars & Donald R. Deere, 1991. "The Threat of Unionization, the Use of Debt, and the Preservation of Shareholder Wealth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(1), pages 231-254.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    capital structure; collective bargaining; trade unionism; inventories india;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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