Abstract: The research conducted in early seventies apparently
assumed the existence of a universal decision model for union
negotiators and furthermore tended to regard financial information as
a ‘neutral’ input into a rational decision making process. However,
research in the eighties began to question the neutrality of financial
information as an input in collective bargaining rather viewing it as a
potentially effective means for controlling the labour force.
Furthermore, this later research also started challenging the simplistic
assumptions relating particularly to union objectives which have
underpinned the earlier search for universal union decision models.
Despite the above developments there seems to be a dearth of studies
in developing countries concerning the use of financial information in
collective bargaining. This paper seeks to begin to remedy this
deficiency. Utilising a case study approach based on two enterprises,
one in the public sector and the other a multinational, the universal
decision model is rejected and it is argued that the decision whether
or not to use financial information is a contingent one and such a
contingency is largely defined by the context and environment in
which both union and management negotiators work. An attempt is
also made to identify the factors constraining as well as promoting
the use of financial information in collective bargaining, these being
regarded as unique to the organisations within which the case studies
are conducted.
Abstract: The objective of this study is to propose a statistical
modeling method which enables simultaneous term structure
estimation of the risk-free interest rate, hazard and loss given default,
incorporating the characteristics of the bond issuing company such as
credit rating and financial information. A reduced form model is used
for this purpose. Statistical techniques such as spline estimation and
Bayesian information criterion are employed for parameter estimation
and model selection. An empirical analysis is conducted using the
information on the Japanese bond market data. Results of the
empirical analysis confirm the usefulness of the proposed method.