Indian Journal of Industrial Relations: Economics & Social Dev.

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Leverage & Trade Unionism in Indian Industry: An Empirical Note


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1 Reserve Bank of India, India
     

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Market power in the hands of a supplier such as a labor union affects an industrys capital structure. Using panel data techniques for 1992-2004, this note shows that industries indeed appear to employ financial leverage strategically to influence collective bargaining decisions. The estimates imply that strategic incentives from input markets have a substantial impact on financing decisions.
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  • Leverage & Trade Unionism in Indian Industry: An Empirical Note

Abstract Views: 293  |  PDF Views: 0

Authors

Saibal Ghosh
Reserve Bank of India, India

Abstract


Market power in the hands of a supplier such as a labor union affects an industrys capital structure. Using panel data techniques for 1992-2004, this note shows that industries indeed appear to employ financial leverage strategically to influence collective bargaining decisions. The estimates imply that strategic incentives from input markets have a substantial impact on financing decisions.

References