Union Decertifications's Impact on Shareholder Wealth

THOMAS G. PEARCS, JAMES E. GROFF, John R. Wingender

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Recent research correlated share price declines in financial markets with union organizing. Investors seemingly anticipate a redistribution of earnings away from shareholder returns toward employee compensation. The markets discount security prices accordingly. But were that the case, union decertification activity should correlate with persistent, abnormally high returns on equity investments. Failure to find returns that are both abnormally high and persistent invites an alternative explanation that is consistent with the data from both studies. This study finds that firms that retained union representation in decertification cases actually outperformed those that ousted the bargaining agent in a partitioned sample comparison.

Original languageEnglish (US)
Pages (from-to)58-72
Number of pages15
JournalIndustrial Relations
Volume34
Issue number1
DOIs
StatePublished - 1995
Externally publishedYes

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Compensation (personnel)
Shareholders
Personnel
Financial markets
Shareholder wealth

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

Cite this

Union Decertifications's Impact on Shareholder Wealth. / PEARCS, THOMAS G.; GROFF, JAMES E.; Wingender, John R.

In: Industrial Relations, Vol. 34, No. 1, 1995, p. 58-72.

Research output: Contribution to journalArticle

PEARCS, THOMAS G. ; GROFF, JAMES E. ; Wingender, John R. / Union Decertifications's Impact on Shareholder Wealth. In: Industrial Relations. 1995 ; Vol. 34, No. 1. pp. 58-72.
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