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題名 The strategic choice of payment method in corporate acquisitions: The role of collective bargaining against unionized workers
作者 Chen, I-Ju
Chen, Yan-Shing
陳聖賢
Chen, Sheng-Syan
貢獻者 財管系
關鍵詞 Acquisitions; Payment method; Collective bargaining; Labor unions
日期 2018-03
上傳時間 24-Jul-2018 16:16:03 (UTC+8)
摘要 Acquirers facing strong union power tend to acquire target firms with cash rather than equity or a mix of cash and equity. A one standard deviation increase in the union power faced by the acquirer increases the odds of choosing cash payment by a factor ranging from 1.26 to 1.57. The effect is stronger when: the acquiring firm is located in states without the right-to-work laws; the interests of managers are more aligned with shareholders in acquiring firms; and acquiring firms’ asset specificity is high. When union power is strong, acquirers making cash payment are associated with a significantly positive announcement return. In addition, they are less likely to experience labor strikes or declines in operating performance, and more likely to obtain wage concessions in collective bargaining in the post-acquisition period than acquirers using other methods of payment. These findings suggest that cash payment allows acquirers to reduce excess liquidity and strengthen their bargaining power with unions.
關聯 Journal of Banking & Finance,Volume 88, Pages 408-422
資料類型 article
DOI https://doi.org/10.1016/j.jbankfin.2018.01.009
dc.contributor 財管系
dc.creator (作者) Chen, I-Juen_US
dc.creator (作者) Chen, Yan-Shingen_US
dc.creator (作者) 陳聖賢zh_TW
dc.creator (作者) Chen, Sheng-Syanen_US
dc.date (日期) 2018-03
dc.date.accessioned 24-Jul-2018 16:16:03 (UTC+8)-
dc.date.available 24-Jul-2018 16:16:03 (UTC+8)-
dc.date.issued (上傳時間) 24-Jul-2018 16:16:03 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/118857-
dc.description.abstract (摘要) Acquirers facing strong union power tend to acquire target firms with cash rather than equity or a mix of cash and equity. A one standard deviation increase in the union power faced by the acquirer increases the odds of choosing cash payment by a factor ranging from 1.26 to 1.57. The effect is stronger when: the acquiring firm is located in states without the right-to-work laws; the interests of managers are more aligned with shareholders in acquiring firms; and acquiring firms’ asset specificity is high. When union power is strong, acquirers making cash payment are associated with a significantly positive announcement return. In addition, they are less likely to experience labor strikes or declines in operating performance, and more likely to obtain wage concessions in collective bargaining in the post-acquisition period than acquirers using other methods of payment. These findings suggest that cash payment allows acquirers to reduce excess liquidity and strengthen their bargaining power with unions.en_US
dc.format.extent 596922 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) Journal of Banking & Finance,Volume 88, Pages 408-422
dc.subject (關鍵詞) Acquisitions; Payment method; Collective bargaining; Labor unionsen_US
dc.title (題名) The strategic choice of payment method in corporate acquisitions: The role of collective bargaining against unionized workersen_US
dc.type (資料類型) articleen
dc.identifier.doi (DOI) 10.1016/j.jbankfin.2018.01.009
dc.doi.uri (DOI) https://doi.org/10.1016/j.jbankfin.2018.01.009