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Labor Protection and Leverage

Elena Simintzi, Vikrant Vig and Paolo Volpin.

in The Review of Financial Studies

February 2015; p ublished online August 2014 .

Journal Article. Subjects: Wages, Compensation, and Labour Costs; Labour-Management Relations, Trade Unions, and Collective Bargaining; Corporate Governance; Bankruptcy; Employment and Labour Law. 14590 words.

This paper exploits intertemporal variations in employment protection across countries and finds that rigidities in labor markets are an important determinant of firms' capital structure...

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