Minimum Wage and Shareholder Wealth: Evidence from Hong Kong
Applied Economics Quarterly, Forthcoming
Posted: 24 Jun 2011 Last revised: 7 Mar 2015
Date Written: 2013
Abstract
This paper examines the impact of the minimum wage legislation on firms’ performance through the abnormal returns of share prices. Abnormal returns are estimated for events throughout the legislation in Hong Kong. Evidences show that the anticipated impact of the minimum wage on firms’ performance is generally negative. Furthermore, large firms and firms in the retail sector are expected to be more adversely affected by the law.
Keywords: minimum wage, firm performance, event study, multivariate regression model
JEL Classification: J31, J38, L25
Suggested Citation: Suggested Citation
Wong, Kin Ming and Chong, Terence Tai-Leung, Minimum Wage and Shareholder Wealth: Evidence from Hong Kong (2013). Applied Economics Quarterly, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1871528
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