{
  "title": "Banks and Labor as Stakeholders: Impact on Economic Performance",
  "publication": "IMF Working Papers, September 1, 2008",
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  "summary": "Traditionally, the impacts of the rights of financial institutions and workers on corporate performance have been analyzed independently. Yet, theory clearly indicates that the combination of relative powers of different stakeholders affects a firm overall performance. Using U.S.",
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    {
      "heading": "Summary and research question",
      "content": "- Traditionally, the impacts of the rights of financial institutions and workers on corporate performance have been analyzed independently.\n- Theory indicates that the combination of relative powers of different stakeholders affects a firm overall performance.\n- This study investigates how output growth is affected by bank branch deregulation and employment protection occurring over 1972-1993 using U.S. state level and state-industry level data."
    },
    {
      "heading": "Data and scope",
      "content": "- Geographic scope: United States (state level and state-industry level).\n- Time period examined: 1972-1993.\n- Unit of analysis: State growth and industry-level growth across industries varying in knowledge intensity and external financing dependency."
    },
    {
      "heading": "Key empirical findings",
      "content": "- Financial liberalization positively impact overall state growth.\n- Greater workers' rights affects overall state growth ambiguously.\n- At the industry level:\n  - Employment protection promotes those industries that are more knowledge intensive.\n  - The effect of financial liberalization does not differ across industries that vary in external financing dependency.\n- The results hold controlling for changes in shareholders' rights, which itself is not significant.\n- Interpretation of channels:\n  - Financial liberalization operates mostly through an efficiency channel, better reallocating resources across sectors.\n  - Employment protection creates higher incentives and encourages more sector-specific, human capital investments.\n- Overall conclusion: The strength of stakeholders' protection affects performance through efficiency channels and provide support for a stakeholders' view of corporate governance."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Financial liberalization may enhance aggregate growth by improving resource allocation across sectors (efficiency channel).\n- Employment protection may encourage investments in sector-specific human capital and thus promote growth in knowledge-intensive industries.\n- Shareholders' rights changes were not significant in these results, suggesting stakeholder balance between banks and labor plays a distinct role.\n\n---\n\n Content in this bundle\n\n- 3. State-Indistry Level Regressions—Benchmark\n  - 3. State-Indistry Level Regressions—Benchmark (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 3. State-Indistry Level Regressions—Benchmark (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/banks-and-labor-as-stakeholders-impact-on-economic-performance-22314"
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    "Authors: Kenichi Ueda, Stijn Claessens",
    "Published: September 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870879.001",
    "Traditionally, the impacts of the rights of financial institutions and workers on corporate performance have been analyzed independently.",
    "Theory indicates that the combination of relative powers of different stakeholders affects a firm overall performance.",
    "This study investigates how output growth is affected by bank branch deregulation and employment protection occurring over 1972-1993 using U.S. state level and state-industry level data.",
    "Geographic scope: United States (state level and state-industry level).",
    "Time period examined: 1972-1993.",
    "Unit of analysis: State growth and industry-level growth across industries varying in knowledge intensity and external financing dependency.",
    "Financial liberalization positively impact overall state growth.",
    "Greater workers' rights affects overall state growth ambiguously.",
    "At the industry level:",
    "The results hold controlling for changes in shareholders' rights, which itself is not significant.",
    "Interpretation of channels:",
    "Overall conclusion: The strength of stakeholders' protection affects performance through efficiency channels and provide support for a stakeholders' view of corporate governance.",
    "Financial liberalization may enhance aggregate growth by improving resource allocation across sectors (efficiency channel).",
    "Employment protection may encourage investments in sector-specific human capital and thus promote growth in knowledge-intensive industries.",
    "Shareholders' rights changes were not significant in these results, suggesting stakeholder balance between banks and labor plays a distinct role.",
    "**3. State-Indistry Level Regressions—Benchmark**"
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