Employee stock ownership and employee attitudes: A test of three models 

Summary

Results of a test of three alternative models of the conditions necessary for employee ownership to positively influence employee attitudes are reported. Based on a study of 37 employee stock ownership plan (ESOP) companies (N of individuals=2,804), results support hypotheses for the extrinsic and instrumental satisfaction models. Average company ESOP satisfaction and organizational commitment are high and average company turnover intention is low when the ESOP provides substantial financial benefits to employees, when management is highly committed to employee ownership, and when the company maintains an extensive ESOP communications program. In contrast, the results provide no support for the intrinsic satisfaction model of ESOP effects.