News

Paper accepted for 2015 Western Finance Association Meeting

The paper “Employee Representation and Financial Leverage” by Chen Lin, Thomas Schmid and Yuhai Xuan has been accepted for the 2015 WFA Meeting.

The paper addresses the question of whether and how employee power influences a company’s financial leverage. It can be shown that employee power increases financial leverage which is explained by the side effect of reduced agency conflicts between firm and debt providers. The argument is supported by evidence from bank ownership data.

A working paper version can be found here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2544223