That’s a lot of hand waving around an assertion conspicuously missing any supporting logic or data. Do you have any citations? Say, for example, a study comparing the actions of unions versus senior management over time? It’s not hard to find examples of unions accepting cuts to help the future of a business during a bad economic downturn, or executives focused on juicing the share price before they sell, so I think something rigorous would be better than trading vague generalities.
Also I'm not sure what "supporting logic" is, I presented my logic and you can disagree with it if you want (usually using different logic, which you haven't presented), but there's no such thing as "supporting logic".
That’s paywalled but the abstract is talking about stock market pricing, not the health of the company. Lower equity would make intuitive sense if workers have better compensation, but that doesn’t mean the business is less competitive or likely to survive.
> I don't think you understand what the price of a stock means ...
Well, the context here was your assertion that unions don’t act in the “long-term interest of a business”. Now, most people understand that share prices are bets on the future value, but also that it’s not a direct relationship because there’s an inherent tension between long-term and short-term interests. That plays out in questions about how much or whether to pay dividends (which has seen a big multigenerational shift in investor preferences), and whether a move which raises share prices is a long-term detriment.
We’ve seen a lot of the latter discussed here lately with tech companies doing broad layoffs to satisfy activist investors, despite research suggesting that companies making unforced layoffs tend to underperform over the long term.
