Do Nonfinancial Stakeholders Affect the Pricing of Risky Debt? Evidence from Unionized Workers

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Employee Rights and Acquisitions (2015, unknown): “Chen, Kacperczyk, and Ortiz-Molina (2012) find that strong unions mitigate risk-shifting, resulting in less risk taking and R&D and a lower cost of debt.”
Labor Unions and Tax Aggressiveness (2013, unknown): “In fact, prior research supports unions’ assessments of managers’ investment decisions that are consistent with a bondholders’ perspective, generally suggesting that unions prefer less risk than shareholders or managers (Faleye, Mehrotra, and Morck, 2006; Chen, Kacperczyk, and Ortiz-Molina, 2012).”
Customer Concentration Risk and the Cost of Equity Capital (2016, background): “Yet, Chen et al. (2012) find that unionization lowers a firm’s cost of debt.”
Does stock price informativeness affect labor investment efficiency (2016, result): “We expect that 1 is positive and 2 is negative, consistent with prior research (e.g., Anderson Banker, and Janakiraman, 2003; Chen et al., 2012; Prabowo et al., 2015) and suggesting that labor costs are sticky.”