U.S. labor laws impose higher costs on unionized firms in states without right-to-work (RTW) laws. I find that these firms experience poor stock performance. The difference-in-differences analysis comparing the effect of RTW laws on unionized and nonunionized firms shows that unionized firms in...

In the U.S., the costs of unionized labor are higher in states without right-to-work (RTW) laws. I show that unionized firms located in these states invest less. These firms have about four percentage points lower capital expenditures (normalized by net property, plant, and equipment) than other...

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

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...

High leverage can be used to improve a firm's bargaining position with unions. I show that in the U.S. such use of leverage is concentrated in states without right-to-work (RTW) laws. The use of high leverage by unionized firms in these states is associated with high market-to-book ratios and is...

We examine leverage changes around mergers by similar-size firms. If asset characteristics drive leverage, both acquirer and target pre-merger leverage should predict long-term post-merger leverage. We find that only acquirer pre-merger leverage has a long-term effect. The effect of target...