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The Effect Of Labor Unionization On Corporate Investment Efficiency, Yu Zhang
The Effect Of Labor Unionization On Corporate Investment Efficiency, Yu Zhang
Graduate Masters Theses
This paper examines the relationship between labor unionization rates and corporate investment efficiency using 55,300 firm-year observations from 1983–2002. I find evidence that labor unionization rates are negatively associated with underinvestment and overinvestment, which suggests that labor unions can improve investment efficiency. I also find that labor unions and financial reporting quality are complementary in improving investment efficiency.