Unionization, product market competition, and strategic disclosure

Daniel Aobdia and Lin Cheng

Journal of Accounting and Economics, 2018, vol. 65, issue 2, 331-357

Abstract: We examine the disclosure policies of non-unionized firms operating in unionized industries. We test the hypothesis that non-unionized firms have an incentive to disclose more information when their unionized rivals are engaged in labor renegotiations; that is, to weaken them. We find that non-unionized firms disclose more information and more good news when renegotiations are ongoing. This behavior is stronger for larger firms, firms with fewer peers in the industry, and firms more similar to their renegotiating rivals. We also find some evidence that unionized firms are harmed by this behavior and that non-unionized firms benefit from their increased disclosures.

Keywords: Disclosure; Information transfer; Labor unions; Product market competition; Proprietary costs (search for similar items in EconPapers)
JEL-codes: J51 J52 M40 M41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:65:y:2018:i:2:p:331-357

DOI: 10.1016/j.jacceco.2018.01.002

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