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The Viability of Employee-Owned Firms: Evidence from France 

by: Estrin, Saul; Jones, Derek C.
Source: Industrial and Labor Relations Review 

This study examines data on French producer cooperatives for the years 1970-79 to test the widely accepted theoretical prediction that employee-owned firms either will fail as commercial undertakings or degenerate into capitalist firms as the proportion of hired workers who are not members of the cooperative firm increases. Contrary to this prediction, the authors find a high rate of survival among the producer cooperatives studied, with many cooperatives still healthy after fifty years of operation, and they find no evidence of degeneration —either in terms of the proportion of hired workers, productivity, profitability, or capital-intensity. The findings do, however, suggest that the firms' financial structure became increasingly inefficient with age.


Details

Link: The Viability of Employee-Owned Firms: Evidence from France 
Publication Date: 1991-01-01
Pages: 17

discipline
Business, Government, and Society
Finance
topic
Cooperatives
Finance
industry
product
region
Europe
country
France
company