UNION CERTIFICATION IN ONTARIO - ITS EFFECT ON THE VALUE OF THE FIRM

Event study methodology is used to determine the effect of union certi fication in Ontario on the expected profitability of firms. Raid and n on-raid applications and the method of certification are examined. Con trary to expectations, we find no strong negative response to certific ation applications in most cases. In general, the more contentious the certification process, the greater the negative abnormal returns, Thi s is not only true within Ontario but also when our results are compar ed to those of the U.S.