“…Consequently, managers facing strong labor unions have incentives to safeguard firm resources and weaken union bargaining power. For instance, to lower union rents, firms have been shown to hold less cash (Klasa, Maxwell, & Ortiz‐Molina, 2009; Tong, 2015; Tong & Huang, 2018), increase leverage (Bronars & Deere, 1991), and reduce tax aggressiveness (Chyz, Leung, Li, & Rui, 2013).…”