Labor unions, pay disparity and financial statement comparability
Eun Hye Jo,
Jung Wha Lee
Abstract:PurposeThis study examines how the presence of labor unions affects a firm’s pay disparity between executives and employees and its financial statement comparability.Design/methodology/approachIt uses firm-level labor union data in Korea and applies regression analyses to a sample of 1,776 firm-year observations from 2004 to 2008.FindingsThe authors find that unionized firms have a smaller pay disparity between executives and employees than non-unionized firms, suggesting that labor unions place pressure on th… Show more
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