The mainstream economic theory that guides corporations in the US only works if markets are perfectly efficient. This flawed theory has led to corporate decision-making that centers shareholders above all else, including other stakeholders (e.g., workers), long-term business growth, and economic health. This shareholder-first ideology is referred to as “shareholder primacy,” which does not reflect … Read More
In this paper, we first examine whether Huawei has an advantage over ZTE following the strategic restructurings in 2011, and then retest the hypothesis on the positive effect of an ESOP on Huawei’s competitive position…
The ideas of employee ownership and various forms of profit sharing in corporations have been around for a long time. The shorthand proposition under study is this: If employees observe that they have a meaningful stake in the fortunes of the enterprise, they create value. More specifically, if they have a financial and emotional stake in the performance of the venture, then as individuals and as a workplace community they will raise the level of their performance and productivity.
The authors found that companies with broad-based stock option plans (here, defined as those where most nonmanagement employees receive option grants) had statistically significant higher productivity levels and annual growth rates than public companies in general and their peers.
We examine how employee ownership is used to solve the agency problem between institutional investment management firms and employees.
This paper reviews the main strands of research on employee share ownership over the last forty years.
Should Wachovia Bank and Trust lend the ESOP of Starrett the money to purchase shares? The required tasks involve a standard credit analysis and the valuation of Starrett’s shares.
Samuel Zell’s acquisition of the Tribune Company in December 2007 using an S corporation employee stock ownership plan (S ESOP) brought S ESOPs to national attention.
This paper summarizes new evidence from the “Shared Capitalism” Project on the extent to which workers’ earnings depend on the performance of their firm or work group in the US and advanced European countries and on the impact of sharing arrangements on economic behavior.
How employee share ownership plans affect employee compensation and shareholder value depends on the size.
This study seeks to ascertain the impact of employee stock ownership plans (ESOPs) on earnings management.
This study explores, through case studies of ESO plans at two Australian companies, three key issues relevant to the implementation of ESO plans and the policy and regulation applicable to ESO plans.
This study empirically investigates the value employees place on stock options using information from the option exercise behavior of individuals
This paper surveys key issues and themes surrounding ESO schemes in Australia.
The relationship between employee ownership and desirable organizational outcomes is well documented, but the cause, if any, is not.
The author considers the idea that employee ownership of the organizations they work in can influence the dynamics of ‘sustainable peace.’
The growth of ESOPs over the past 25 years is part of a general growth in compensation arrangements linking worker pay to company performance, including profit sharing, gain-sharing, and broad-based stock options in addition to the various methods of employee ownership.
In light of varying outlooks on the process of individualisation in the hitherto collectively regulated industries, it was thought worthwhile revisiting the three disputes (those involving CRA Weipa, BHP, and the Commonwealth Bank) and thoroughly documenting them with a view to discovering what light they shed on the objectives of the individualisation process.
This paper examines the use and consequences of shared compensation plans (profit sharing, profit related pay, SAYE schemes and company stock option plans) in a sample of UK workplaces and firms in the 1990s.
This paper summarizes the findings from over 50 large-sample empirical studies that have been done on employee ownership and broad-based stock option plans in the past 25 years, covering studies on plan adoption, employee attitudes and behaviours, firm performance, and employee wages and wealth.
Provides a brief overview of employee stock ownership plans (ESOPs) and phantom stock plans for owners of closely held companies.
The Mondragon Cooperative Corporation (MCC), a system of worker cooperatives located in the Basque country of Spain, is still considered to be one of the most significant models of worker ownership and community economic development, in the world.
Employee ownership in U.S. companies has grown substantially in the past 20 years. This paper reviews and provides some meta-analyses on the accumulated evidence concerning the prevalence, causes, and effects of employee ownership, covering 25 studies of employee attitudes and behaviors, and 27 studies of productivity and profitability (with both cross-sectional and pre/post comparisons).