Labour market conditions and the corporate financing decision: A European analysis
نویسندگان
چکیده
This study examines the influence of labour market conditions on corporate capital structure in a sample 2892 firms from France, Germany, Italy, Spain, and UK. After considering effect unemployment inflation, we analyse impact two imperfections: employees’ rights downward wage rigidity. Results indicate that financial leverage responds to changes inflation. We also find is non-linear, whereas negative rigidity moderated by firms’ power. Taken together, our results show decisions are conditioned not only firm-level issues but country’s market.
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ژورنال
عنوان ژورنال: Research in International Business and Finance
سال: 2021
ISSN: ['0275-5319', '1878-3384']
DOI: https://doi.org/10.1016/j.ribaf.2021.101431