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...