RT info:eu-repo/semantics/article
T1 Labour market conditions and the corporate financing decision: A European analysis
A1 Vega Gutiérrez, Pedro Luis
A1 López Iturriaga, Félix Javier
A1 Rodríguez Sanz, Juan Antonio
K1 Capital structure
K1 Estructura de capital
K1 Unemployment
K1 Desempleo
K1 Inflation
K1 Inflación
K1 Labour market
K1 Mercado laboral
AB 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.
PB Elsevier
SN 0275-5319
YR 2021
FD 2021
LK https://uvadoc.uva.es/handle/10324/47973
UL https://uvadoc.uva.es/handle/10324/47973
LA eng
NO Research in International Business and Finance, 2021, vol. 58, 101431
NO Producción Científica
DS UVaDOC
RD 23-abr-2024