TY  - UNPD
A1  - Rettl, Daniel A.
A1  - Stomper, Alex
A1  - Zechner, Josef
T1  - The stability of dividends and wages: effects of competitor inflexibility
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 549
N2  - We analyze global data about electricity generation and document that the risk exposure of a firm’s owners and its workers depends on competitors’ ability or willingness to change their output in response to productivity shocks. Competitor inflexibility appears to be a risk factor: the sales of firms with more inflexible competitors respond more strongly to aggregate sales shocks. As a consequence, competitor inflexibility also affects the stability of firms’ total wage- and dividend-payments. Firms with relatively flexible competitors appear to smoothen both wages and dividends, but an increase in competitor inflexibility is associated with less dividend-smoothing and more wage-smoothing. Our evidence supports the idea that labor productivity risk associated with competitor inflexibility should be borne by firms’ shareholders, rather than by their workers.
T3  - CFS working paper series - 549 
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/41868
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-418687
UR  - https://ssrn.com/abstract=2858926
IS  - March 26, 2016
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -