Does employee ownership survive the transition?

2002 ◽  
Vol 52 (3) ◽  
pp. 307-325 ◽  
Author(s):  
P. Kalmi
Keyword(s):  
Firm Performance ◽  
Transition Economies ◽  
Employee Ownership ◽  
New Employees ◽  
Ownership Structures

Privatisation to employees has been common in Estonia and in other transition economies, but some evidence suggests that employee ownership is declining. In this paper, I use the concept of “degeneration” from the literature of worker co-operatives to explain this decline. In the first part of the paper, I draw from the literature of complementarities in firm performance and apply the argument to the problem of stability of ownership structures. In the second part of the paper, I use evidence from management interviews and employee questionnaires taken at six Estonian enterprises with employee ownership. The evidence suggests that employee ownership is rapidly declining in Estonia. The main reason for the decline is that ownership is not extended to new employees.

scholarly journals Estimating the Effects of Large Shareholders Using a Geographic Instrument

2011 ◽  
Vol 46 (4) ◽  
pp. 907-942 ◽  
Author(s):  
Bo Becker ◽  
Henrik Cronqvist ◽  
Rüdiger Fahlenbrach
Keyword(s):  
Firm Performance ◽  
Treatment Effects ◽  
Large Impact ◽  
Selection Effects ◽  
Empirical Observation ◽  
Public Firms ◽  
Ownership Structures ◽  
Large Shareholders ◽  
Empirical Framework

AbstractLarge shareholders may play an important role for firm performance and policies, but identifying this empirically presents a challenge due to the endogeneity of ownership structures. We develop and test an empirical framework that allows us to separate selection from treatment effects of large shareholders. Individual blockholders tend to hold blocks in public firms located close to where they reside. Using this empirical observation, we develop an instrument (the density of wealthy individuals near a firm’s headquarters) for the presence of large, nonmanagerial individual shareholders in firms. These shareholders have a large impact on firms, controlling for selection effects.

scholarly journals Impact of Ownership Structure on Firm Performance in the MENA Region: An Empirical Study

2017 ◽  
Vol 6 (3) ◽  
pp. 105 ◽  
Author(s):  
Neveen Ahmed ◽  
Ola Abdel Hadi
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Positive Impact ◽  
Mena Region ◽  
Positive Role ◽  
Insider Ownership ◽  
Mena Countries ◽  
Ownership Structures ◽  
Firm Financial Performance ◽  
The Impact

This paper investigates the impact of ownership structures on firm financial performance in the MENA region.  The sample covers nine MENA countries (Egypt, Bahrain, Qatar, Kuwait, Tunisia, UAE, Morocco, Oman and Jordan) for the year 2014. We examine the impact of ownership structures on firm performance. Performance is proxied by Tobin-Q, ROE and ROA, while ownership structure is proxied using insider ownership, governmental, and blockholders. We control for risk, size, country effect and industry type. Our results suggest that blockholders, insider ownership and governmental ownership play a crucial role in firm performance measured by Tobin-Q, ROE and ROA respectively. Our results suggest that insider ownership negatively effects firm’s return on equity, while blockholder ownership has a positive impact on a firm’s Tobin-Q. Finally we find that governmental ownership plays a positive role on a firm’s return on assets in the MENA region. 

scholarly journals Revisiting the Relationship between Justice and Extra-Role Behavior: The Role of State Ownership

2018 ◽  
Vol 14 (3) ◽  
pp. 607-639 ◽  
Author(s):  
Xi Chen
Keyword(s):  
Distributive Justice ◽  
Organizational Justice ◽  
Transition Economies ◽  
Positive Relationship ◽  
State Ownership ◽  
Relational Models ◽  
Role Behavior ◽  
Ownership Structures ◽  
The Relationship ◽  
Role Behaviors

ABSTRACTState ownership is an important phenomenon in the world economy, especially in transition economies. Previous research has focused on how state ownership influences organizational performance, but few studies have been conducted on how state ownership influences employees. I propose that different ownership structures trigger different relational models among employees who pay attention to organizational justice consistent with their model to guide their extra-role behavior. Specifically, state-owned organizations reinforce employees’ relational concern and direct employees’ attention to procedural justice, whereas privatized organizations highlight employees' instrumental concern and direct their attention to distributive justice. I leverage a sample of organizations in China to explore how different ownership structures activate different relational models among employees and alter the relationship between organizational justice and employees’ extra-role behaviors. I find that state ownership attenuates and even reverses the positive relationship between distributive justice and extra-role behaviors. Conversely, state ownership exaggerates the positive relationship between a critical procedural justice dimension (participation in decision making) and employee extra-role behaviors. Implications for the micro-foundations of corporate governance and institutional change, organizational justice literature, and cross-cultural research are developed. This study also generates new insights for transition economies such as China.

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