The Effect of Labor Unions on Firm’s Cash Flow Sensitivity of Cash
碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 101 === This paper examines the firm’s propensity to save cash out of cash flows (the cash flow sensitivity of cash) when considering the effect of labor unions. Using unionization rates to proxy for union strength, I show that the corporate cash flow sensitivity of...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2013
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| Online Access: | http://ndltd.ncl.edu.tw/handle/53992422761901328562 |
| Summary: | 碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 101 === This paper examines the firm’s propensity to save cash out of cash flows (the cash flow sensitivity of cash) when considering the effect of labor unions. Using unionization rates to proxy for union strength, I show that the corporate cash flow sensitivity of cash is negatively related with union power, which implies that firms facing stronger unions strategically choose to save less cash out of cash flows. By doing so, a firm can make a more credible case that the risk of liquidity shortages threatens its competitive viability and thus enhance its bargaining power against the union.
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