Abstract
This paper examines whether labor unions affect the bank performance during recently financial crisis. The empirical evidence from 228 largest banks around the globe indicate that the buy-and-hold returns of unionized banks are higher and the default probabilities are lower during the crisis period when compared non-unionized banks. In addition, unionized banks experience a larger increase in tier 1 capital ratio in crisis years and have lower leverage ratio and tail risk in the pre-crisis year. These results suggest that banks adopt less risky investment and lending policies to accommodate the preference of unionized labor.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
