We examine investment by different types of institutional investors in underperforming firms with agency problems complicated by laws and regulations: U.S. firms with strong labor unions. As unions have special powers granted by government, unions have to serve the interests of politicians if...

Using corporate social responsibility (CSR) scores, we examine the effect of unionization on non-shareholding stakeholders and the value of CSR for unionized firms. Our findings suggest that unionization leads to lower CSR. This negative relation between unionization and CSR is stronger for...

We examine whether financial analysts understand the effect of unionization on firm earnings in the U.S. by examining a large panel dataset with firm-level unionization, adoptions of right-to-work (RTW) laws, and union certification elections. We find that forecast errors for unionized firms in...