Why Do Employee Ownership Firms Have Greater Stability and Survival?
Why are employee ownership firms more likely to be stable and long lived? Two possible explanations are that either greater compensation flexibility or greater productivity in employee ownership firms accounts for their greater stability and survival. This chapter presents evidence on both these exp...
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| Published in | How Did Employee Ownership Firms Weather the Last Two Recessions? p. 113 |
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| Main Authors | , |
| Format | Book Chapter |
| Language | English |
| Published |
United States
W.E. Upjohn Institute
23.01.2017
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| Online Access | Get full text |
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| Summary: | Why are employee ownership firms more likely to be stable and long lived? Two possible explanations are that either greater compensation flexibility or greater productivity in employee ownership firms accounts for their greater stability and survival. This chapter presents evidence on both these explanations. As will be seen, neither of them provides a full explanation of the greater stability and survival, although the evidence suggests support for a refined version of the productivity explanation.
There are two possible ways in which employee ownership may provide pay flexibility to the firm in times of financial distress. First, employers’ yearly contributions to |
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| ISBN: | 9780880995252 0880995254 |