Ownership, Financialisation, and Employment Relations: Employment, Industrial Relations, and HRM in Stock-Market Listed Firms
22 Pages Posted: 7 Dec 2016
Date Written: September 5, 2016
The paper addresses how corporate ownership influences and constrains managerial decision-making in industrial relations and HRM. The specific focus is stock-market listed companies, and the argument that the ownership of these firms tends to be associated with various labour management characteristics such as greater pay inequality, job insecurity etc. The paper first reviews the ‘varieties’ approach as an explanation of national differences between labour management. It then examines the effects of ownership within countries, drawing on a range of secondary evidence. It is found that, contrary to some expectations, stock market firms are more likely to have ‘high commitment’ labour, employment, and HRM practices. This is attributed to various features of stock-market listed firms such as greater disclosure and public visibility. We then show that the number of stock-market listed companies is declining in many economies, with several reasons identified for this. The paper concludes by discussing the emergence of private equity and the differences between private equity and stock market ownership.
Keywords: Industrial relations, corporate ownership
JEL Classification: J50, M54
Suggested Citation: Suggested Citation