Abstract: This study empirically analyzed the effects of the labor union's bargaining power of diversified companies on the capital structure under financial constraints with the diversified companies listed on the Korea Stock Exchange from January 1, 2000 to December 32, 2019. The significant findings are as follows. Companies with the labor union strategically increase leverage to increase bargaining power with trade unions, and firms with large operating profit volatility tend to increase leverage more. This means that the greater the volatility of operating profit, the greater the bargaining power with trade unions through increased leverage, representing both corporate and trade union interests. In addition, companies with labor unions increase their leverage to increase bargaining power with the labor union even under financial constraints and make a strategic choice to diversify profits and minimize.......
Key Word: Labor union, Company with a labor union, Capital structure, Financial constraints
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