Levels of Employee Share Ownership and the Performance of Listed Companies in Europe

25 Pages Posted: 12 May 2017

See all articles by Ansgar Richter

Ansgar Richter

University of Liverpool - Management School (ULMS)

Susanne Verena Schrader

Boston Consulting Group

Date Written: June 2017

Abstract

We investigate the effects of employee share ownership (ESO) on three alternative measures of firm performance in a panel of 1,115 companies from the five largest European economies. The results show that firms with ESO enjoy significantly higher levels of capital market performance and of accounting performance than firms without ESO; however, the marginal effects of ESO are declining with increasing ESO levels. ESO does not have a clear effect on productivity. These findings hold for all countries except Spain. Variations in ESO levels within firms over time exert few performance effects.

Suggested Citation

Richter, Ansgar and Schrader, Susanne Verena, Levels of Employee Share Ownership and the Performance of Listed Companies in Europe (June 2017). British Journal of Industrial Relations, Vol. 55, Issue 2, pp. 396-420, 2017. Available at SSRN: https://ssrn.com/abstract=2967056 or http://dx.doi.org/10.1111/bjir.12169

Ansgar Richter (Contact Author)

University of Liverpool - Management School (ULMS) ( email )

Chatham Street
Liverpool, L69 7ZH
United Kingdom
44 [0]151 795 3713 (Phone)
44 [0]151 795 3001 (Fax)

Susanne Verena Schrader

Boston Consulting Group ( email )

J.F. Kennedylaan 100
3741 EH Baarn
United States

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