Broad-Based Employee Stock Ownership: Motives and Outcomes

• 成果类型: Article
• 署名作者: Kim, E. Han; Ouimet, Paige
• 署名单位: University of Michigan System; University of Michigan; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12150
• 发表日期: 2014
• 页码: 1273-1319
• 关键词: CORPORATE GOVERNANCE; financial constraints; Defined contribution; cash flow; plans; performance; LABOR; PRODUCTIVITY; CONSEQUENCES; company

摘要

Firms initiating broad-based employee share ownership plans often claim employee stock ownership plans (ESOPs) increase productivity by improving employee incentives. Do they? Small ESOPs comprising less than 5% of shares, granted by firms with moderate employee size, increase the economic pie, benefiting both employees and shareholders. The effects are weaker when there are too many employees to mitigate free-riding. Although some large ESOPs increase productivity and employee compensation, the average impacts are small because they are often implemented for nonincentive purposes such as conserving cash by substituting wages with employee shares or forming a worker-management alliance to thwart takeover bids.