Spillover effect upon a labor event: an empirical analysis for the Spanish continuous market

Abstract

The aim of this paper is to analyse the reaction of the stock prices of competing companies to the signature of a fi rm-level collective agreement. Considering that this type of agreement slants to the rise the wages of these fi rms with respect to those of the sector, we have found empirical evidence that, for the Spanish Market, a fi rm-level agreement incorporates information that could be negatively considered by the investors of the companies which sign own agreement. This would entail a sale of the affected titles whose price would then fall. This paper analyses whether this event affects the stock price of competing companies, that is, whether a spillover effect exist. The arrival of the new information inherent in the signature of the agreement could have a different effect on competing companies based on the type of competition in their industry. The general results of this paper confi rm the spillover effect, although different reactions are observed depending on the industry to which the company belongs and their level of concentration.

El objetivo de este trabajo es analizar el efecto desbordamiento o spillover del Mercado Continuo Español ante la fi rma de un convenio colectivo a nivel empresa. Empíricamente, para el mercado español, se ha demostrado que un convenio de empresa incorpora información negativa para los inversores por el hecho de que este tipo de convenios sesga al alza los salarios respecto a los del sector, lo que conlleva la venta de los títulos afectados y una caída en su precio. Este trabajo analiza si este evento laboral tiene también contenido informativo para los inversores de las empresas competidoras, es decir, si existe efecto spillover. La llegada de la nueva información que contiene la fi rma del convenio podría afectar a las empresas competidoras de distinta forma dependiendo del sector. Los resultados generales de este trabajo confi rman esta hipótesis, si bien se observan reacciones distintas dependiendo del sector al cual pertenezca la empresa y del nivel de concentración de la oferta productiva que posean.