Employee Share Ownership: Safeguarding Investments in Human Capital

Robinson, Andrew M.; Zhang, Hao

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Employee Share Ownership: Safeguarding Investments in Human Capital

British Journal of Industrial Relations, Vol. 43, No. 3, pp. 469-488, September 2005

20 Pages Posted: 14 Sep 2005

See all articles by Andrew M. Robinson

Andrew M. Robinson

University of Leeds - Faculty of Business; University of Leeds - Division of Accounting and Finance

Hao Zhang

University of Macau - Faculty of Business Administration

Abstract

Valuable investments in human capital, it has been argued, may be at risk in much the same way as shareholder equity capital. In this paper, we develop and test the hypothesis that employee share ownership (ESO) may be used to encourage and safeguard investments in human capital. Using the Workplace Employee Relations Survey 1998, we examine the empirical link between the likelihood of ESO and the presence of valuable human capital. Adjusted for possible structural influences, empirical evidence suggests considerable support for our hypothesis.

Suggested Citation: Suggested Citation

Robinson, Andrew M. and Zhang, Hao, Employee Share Ownership: Safeguarding Investments in Human Capital. British Journal of Industrial Relations, Vol. 43, No. 3, pp. 469-488, September 2005, Available at SSRN: https://ssrn.com/abstract=788991