We document that labor unionization rates are associated with lower levels of managerial overinvestment and underinvestment for a sample of 3,731 U.S. publicly traded firms over the period 1983-2013. This result is consistent with the explanation that labor unions can play a governance role in...

Product market competition is a mechanism for efficient allocation of resources and is an important governance mechanism. In this study we examine whether firms operating in high product market competition engage more in classification shifting. Using a large data from 1989 to 2019 and using...