Financialization, corporate governance and employee pay: A firm level analysis

Detalhes bibliográficos
Autor(a) principal: Carvalho, Margarita
Data de Publicação: 2019
Outros Autores: Cerejeira, João
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/1822/61435
http://hdl.handle.net/11328/3480
Resumo: 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.
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spelling Financialization, corporate governance and employee pay: A firm level analysisPanel data modelsInstrumental variablesBanksCapital structureWagesThis 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.Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)2021-04-27T15:59:35Z2019-01-01T00:00:00Z2019info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/1822/61435http://hdl.handle.net/11328/3480engCarvalho, MargaritaCerejeira, Joãoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-06-15T02:11:59ZPortal AgregadorONG
dc.title.none.fl_str_mv Financialization, corporate governance and employee pay: A firm level analysis
title Financialization, corporate governance and employee pay: A firm level analysis
spellingShingle Financialization, corporate governance and employee pay: A firm level analysis
Carvalho, Margarita
Panel data models
Instrumental variables
Banks
Capital structure
Wages
title_short Financialization, corporate governance and employee pay: A firm level analysis
title_full Financialization, corporate governance and employee pay: A firm level analysis
title_fullStr Financialization, corporate governance and employee pay: A firm level analysis
title_full_unstemmed Financialization, corporate governance and employee pay: A firm level analysis
title_sort Financialization, corporate governance and employee pay: A firm level analysis
author Carvalho, Margarita
author_facet Carvalho, Margarita
Cerejeira, João
author_role author
author2 Cerejeira, João
author2_role author
dc.contributor.author.fl_str_mv Carvalho, Margarita
Cerejeira, João
dc.subject.por.fl_str_mv Panel data models
Instrumental variables
Banks
Capital structure
Wages
topic Panel data models
Instrumental variables
Banks
Capital structure
Wages
description 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.
publishDate 2019
dc.date.none.fl_str_mv 2019-01-01T00:00:00Z
2019
2021-04-27T15:59:35Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/1822/61435
http://hdl.handle.net/11328/3480
url http://hdl.handle.net/1822/61435
http://hdl.handle.net/11328/3480
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
publisher.none.fl_str_mv Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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