Union rents as a source of takeover gains among target shareholders.

This paper tests the hypothesis that the substantial gains enjoyed by shareholders in target firms during the corporate acquisition boom of the 1980's reflected, in part, shareholders' recouping of the value of “rents” (in the form of wage premiums, higher fringe benefits, and constraints on manager...

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Publicado en:Industrial & Labor Relations Review Vol. 49; pp. 3 - 20
Autor principal: Becker, Brian E.
Formato: Artículo
Publicado: Cornell University October 1995
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: October 1995
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        atl: Union rents as a source of takeover gains among target shareholders.
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        au: Becker, Brian E.
      su:
        Labor unions
        Stockholders
        Valuation of corporations
        Economics
        Mergers & acquisitions
        Finance
        United States
      sug:
        subj:
          United States
          Labor unions
          Stockholders
          Valuation of corporations
          Economics
          Mergers & acquisitions
          Finance
      ab: This paper tests the hypothesis that the substantial gains enjoyed by shareholders in target firms during the corporate acquisition boom of the 1980's reflected, in part, shareholders' recouping of the value of “rents” (in the form of wage premiums, higher fringe benefits, and constraints on managerial authority) held by unionized labor. Analyzing data on the merger and acquisition experience of nearly 300 large publicly traded target firms during the period 1982-86, the author finds, consistent with that hypothesis, that shareholders' average returns from takeover activity were higher in unionized target firms (41%) than in nonunion target firms (35%). For unionized workers, these effects are equivalent to an annualized employee “loss” approaching 8% of annual earnings, or 50% of the wage premium conventionally associated with coverage. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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