Minimum Wage and Shareholder Wealth: Evidence from Hong Kong

Applied Economics Quarterly, Forthcoming

Posted: 24 Jun 2011 Last revised: 7 Mar 2015

See all articles by Kin Ming Wong

Kin Ming Wong

Hong Kong Baptist University (HKBU)

Terence Tai-Leung Chong

The Chinese University of Hong Kong (CUHK) - Lau Chor Tak Institute of Global Economics and Finance

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

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

Kin Ming Wong (Contact Author)

Hong Kong Baptist University (HKBU) ( email )

Department of Economics
Kowloon, Hong Kong
Hong Kong

Terence Tai-Leung Chong

The Chinese University of Hong Kong (CUHK) - Lau Chor Tak Institute of Global Economics and Finance ( email )

13/F, Cheng Yu Tung Building
12 Chak Cheung Street
Hong Kong, Shatin, N.T.
Hong Kong

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