Please use this identifier to cite or link to this item:
https://hdl.handle.net/1822/61438
Title: | Financialization, corporate governance and employee pay: a firm level analysis |
Author(s): | Carvalho, Margarita Arantes Salgueiro de Cerejeira, João |
Keywords: | Panel data models Instrumental Variables Banks Capital Structure Wages |
Issue date: | 2019 |
Publisher: | Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
Abstract(s): | This study explores the link between financialization and employee wages. Using a panel of European banks from Bankscope we test whether banks use leverage strategically in order to refrain wage increases, focusing on the strategic use of banks’ capital structure as a disciplinary mechanism. The results indicate the existence of a negative and significant effect of leverage on average employee wages. In addition, considering that the effects of leverage could depend on individual bank risk, we extend our analysis to distressed banks, using the z-score as a measure to distinguish banks that are more prone to bankruptcy. We also observe that leverage is statistically significant when relating to average wages; however the impact does not differ in magnitude in comparison to non-distressed banks. |
Type: | Working paper |
Description: | NIPE WP 08/2019 |
URI: | https://hdl.handle.net/1822/61438 |
Publisher version: | https://www.eeg.uminho.pt/pt/investigar/nipe/Paginas/publicacoes.aspx |
Access: | Open access |
Appears in Collections: | NIPE - Documentos de Trabalho |
Files in This Item:
File | Description | Size | Format | |
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NIPE_WP_8_2019.pdf | Financialization, Corporate Governance and Employee Pay: A Firm Level Analysis | 998,06 kB | Adobe PDF | View/Open |