Bank's balance sheet management as a bargaining tool: Evidence from Brazilian labor strikes

IF 5.6 2区经济学 Q1 BUSINESS, FINANCE

Emerging Markets Review Pub Date : 2023-12-23 DOI:10.1016/j.ememar.2023.101094

Patrick Behr , Weichao Wang , Sylvester Adasi Manu

引用次数: 0

Abstract

We investigate whether and how banks adjust their financial positions in the wake of labor strikes. Using hand-collected data at the bank-municipality level in Brazil during 2006–2016, we find that banks significantly increase loan loss provisions, reduce loans disbursed, and hold less liquidity just before the bank labor strikes. These results are consistent with a bargaining hypothesis, suggesting that banks account for fewer current earnings, reduce expected cash flows, and reveal less cash and cash equivalents to labor unions before the anticipated strikes to counter the rent-seeking behavior of unions and strengthen their bargaining power in upcoming wage negotiations.

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作为谈判工具的银行资产负债表管理：巴西劳工罢工的证据

我们研究了银行是否以及如何在罢工后调整其财务状况。通过使用 2006-2016 年期间巴西银行-市镇一级的手工收集数据，我们发现，就在银行罢工之前，银行会大幅增加贷款损失准备金、减少发放贷款、减少持有流动性。这些结果与讨价还价假说相一致，表明银行在预期罢工前计提的当期收益减少，预期现金流减少，向工会披露的现金和现金等价物减少，以抵制工会的寻租行为，增强其在即将到来的工资谈判中的讨价还价能力。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Emerging Markets Review Multiple-

CiteScore

7.10

自引率

4.20%

发文量

审稿时长

100 days

期刊介绍： The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.