Employee Stock Ownership and Corporate Performance in the Public Sector
INDUSTRIAL AND LABOR RELATIONS REVIEW, October 1996
Posted: 16 Jun 1998
This study compares the corporate performance in 1990/91 of two groups of public companies: those in which employees owned more than 5% of the company's stock, and all others. The results are not consistent with either highly positive or negative views of employee ownership. Where differences are found, they are favorable to employee ownership, especially among companies of small size. The circumstances in which employee ownership was implemented--specifically, whether it was part of a wage/benefit concession package and whether there was a takeover threat--do not appear to have had a significant effect on the 1990 performance levels or 1980-90 performance growth of the firms. Although the authors caution that the data do not permit clear tests of causality, these results are broadly consistent with those of past studies.
JEL Classification: J45, G32, J3
Suggested Citation: Suggested Citation