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- Title
Labor Rights, Venture Capital, and Firm Performance.
- Authors
Xing, Xuejing; Howe, John S.; Anderson, Randy I.; Yan, Shan
- Abstract
We investigate the role of labor unions in the performance of venture capital (VC)-backed firms. Using a large sample of initial public offering firms from 1983 to 2013, we find that VC-backed firms in highly unionized industries have lower Tobin's Q and are less likely to survive. This effect is robust to endogeneity concerns and to controlling for industry and firm characteristics. The findings suggest that strong labor rights impede innovative firms' performance and survival, thereby adversely affecting innovation, economic growth, and employment.
- Subjects
EMPLOYEE rights; VENTURE capital; ORGANIZATIONAL performance; LABOR unions; GOING public (Securities)
- Publication
Financial Management (Wiley-Blackwell), 2017, Vol 46, Issue 1, p129
- ISSN
0046-3892
- Publication type
Article
- DOI
10.1111/fima.12137