Why Do Employee Ownership Firms Have Greater Stability and Survival?

• Published in: How Did Employee Ownership Firms Weather the Last Two Recessions? p. 113
• Main Authors: Kurtulus, Fidan Ana, Kruse, Douglas L
• Format: Book Chapter
• Language: English
• Published: United States W.E. Upjohn Institute 23.01.2017

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...