Ownership, Financialisation, and Employment Relations: Employment, Industrial Relations, and HRM in Stock-Market Listed Firms

22 Pages Posted: 7 Dec 2016

See all articles by Andrew Pendleton

Andrew Pendleton

Durham University Business School

Date Written: September 5, 2016

Abstract

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

Pendleton, Andrew, Ownership, Financialisation, and Employment Relations: Employment, Industrial Relations, and HRM in Stock-Market Listed Firms (September 5, 2016). Available at SSRN: https://ssrn.com/abstract=2880497 or http://dx.doi.org/10.2139/ssrn.2880497

Andrew Pendleton (Contact Author)

Durham University Business School ( email )

Mill Hill Lane
Durham, Durham DH1 3LB
United Kingdom

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