2024-03-28T21:53:42Zhttps://uvadoc.uva.es/oai/requestoai:uvadoc.uva.es:10324/479732021-08-23T20:46:54Zcom_10324_1147com_10324_931com_10324_894col_10324_1266
Labour market conditions and the corporate financing decision: A European analysis
Vega Gutiérrez, Pedro Luis
López Iturriaga, Félix Javier
Rodríguez Sanz, Juan Antonio
Producción Científica
This study examines the influence of labour market conditions on corporate capital structure in a sample of 2892 firms from France, Germany, Italy, Spain, and the UK. After considering the effect of unemployment and inflation, we analyse the impact of two market imperfections: employees’ rights and downward wage rigidity. Results indicate that financial leverage responds to changes in unemployment and inflation. We also find that the influence of employees’ rights is non-linear, whereas the negative effect of downward wage rigidity is moderated by firms’ market power. Taken together, our results show that corporate financial decisions are conditioned not only by firm-level issues but also by a country’s labour market.
2021-08-23T09:54:44Z
2021-08-23T09:54:44Z
2021
info:eu-repo/semantics/article
Research in International Business and Finance, 2021, vol. 58, 101431
0275-5319
https://uvadoc.uva.es/handle/10324/47973
10.1016/j.ribaf.2021.101431
eng
https://www.sciencedirect.com/science/article/pii/S0275531921000520?via%3Dihub
info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by-nc-nd/4.0/
© 2021 Los Autores
Attribution-NonCommercial-NoDerivatives 4.0 Internacional
Elsevier
SI