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The effect of work stoppages on the value of firms in Canada

Author

Listed:
  • Robert Hanrahan
  • Joseph Kushner
  • Felice Martinello
  • Isidore Masse

Abstract

Event date methodology is used to estimate the impact of work stoppages on the expected profitability of Canadian firms listed on the Toronto Stock Exchange. Stoppages during collective bargaining decrease returns by 4.5%, whereas illegal stoppages during the term of a collective agreement have little effect on expected returns. The longer the stoppage, the greater the negative impact on the firm. The impact of stoppages also varies across legislative jurisdictions.

Suggested Citation

  • Robert Hanrahan & Joseph Kushner & Felice Martinello & Isidore Masse, 1997. "The effect of work stoppages on the value of firms in Canada," Review of Financial Economics, John Wiley & Sons, vol. 6(2), pages 151-166.
    • Handle: RePEc:wly:revfec:v:6:y:1997:i:2:p:151-166
    DOI: 10.1016/S1058-3300(97)90003-3
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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