Union Concessions Following Asset Sales and Takeovers
64 Pages Posted: 23 May 2018
There are 2 versions of this paper
Union Concessions Following Asset Sales and Takeovers
Number of pages: 63
Posted: 14 Sep 2017
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89
Date Written: September 10, 2017
Abstract
We document that the likelihood of asset sales increases with union presence and union wages. Furthermore, acquiring firms gain significant concessions from the incumbent union following asset sales. Finally, the anticipation of union concessions helps explain the excess stock returns around asset sale announcements. We find no comparable effects for takeovers. We conclude that asset sales, but not takeovers, are partially motivated by the potential to extract concessions from unions.
Suggested Citation: Suggested Citation
Lie, Erik and Que, Tingting, Union Concessions Following Asset Sales and Takeovers (September 10, 2017). Journal of Financial and Quantitative Analysis (JFQA), Forthcoming, Available at SSRN: https://ssrn.com/abstract=3176606 or http://dx.doi.org/10.2139/ssrn.3176606
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