scholarly journals Does Employee Stock Ownership Plan matter? An empirical note

2017 ◽  
Vol 14 (3) ◽  
pp. 381-388 ◽  
Author(s):  
Fitri Ismiyanti ◽  
Putu Anom Mahadwartha
Keyword(s):  
Conflicts Of Interest ◽  
Stock Exchange ◽  
Shareholder Wealth ◽  
Stock Ownership ◽  
Company Performance ◽  
Return On Equity ◽  
Employee Stock Ownership ◽  
Efficiency And Effectiveness ◽  
A Company ◽  
Employee Stock Ownership Plan

Employee Stock Ownership Plan (ESOP) is a company program to provide incentives to managers to increase shareholder wealth and to align interests between the shareholders and the management. This ESOP is one of the most effective efforts to reduce conflicts of interest between the owners and the managers. ESOP program is basically intended to provide motivation and incentives for employees, so that employees will have a sense of concern (sense of belonging) to the company. Productivity is a reflection of the level of efficiency and effectiveness of work in total in a company. Productivity becomes very important, because it can describe the performance of a company. Performance is defined as the size or level at which individuals and organizations can achieve goals effectively and efficiently. This study aims to examine the effect of ESOP variables on company performance by using productivity as a mediating variable in non-financial companies in Indonesia Stock Exchange. The sample used in this research is companies that implement ESOP in the period 2000–2015. In this study, the company’s performance is measured by using return on assets, return on equity and Tobin’s Q, while productivity is measured by using sales per employee, cash flow per employee, and total assets turnover. Based on the results, it can be concluded that Employee Stock Ownership Program (ESOP) has a positive and significant impact on productivity.

ESOP Plus Benefit Corporation: Ownership Culture with Benefit Accountability

2018 ◽  
Vol 60 (4) ◽  
pp. 51-73 ◽  
Author(s):  
Nancy Kurland
Keyword(s):  
Work Environment ◽  
Meaningful Work ◽  
Stock Ownership ◽  
Multiple Stakeholders ◽  
Employee Stock Ownership ◽  
Benefit Corporation ◽  
Shared Power ◽  
To Come ◽  
A Company ◽  
Employee Stock Ownership Plan

Stakeholder capitalism seeks to benefit multiple stakeholders, rather than primarily shareholders. Two increasingly popular forms are the employee stock ownership plan (ESOP) and the benefit corporation. But what happens when a company combines these structures? While the benefit corporation’s expanded stakeholder mandate may appear to come at the expense of employee-owner wealth and the potential for shared power, in fact they can complement one another. Being a benefit corporation can strengthen the employee-owned company’s ownership culture through enhanced engagement and creation of a meaningful work environment. And in turn, employee owners can add a layer of accountability to help them meet the benefit corporation’s expanded stakeholder mandate.

scholarly journals The Effect of Financial Leverage, Employee Stock Ownership Program and Firm Size on Firm Performance of Companies Listed in Indonesia Stock Exchange

2017 ◽  
Vol 1 (2) ◽  
pp. 82
Author(s):  
Nurainun Bangun ◽  
F.X. Kurniawan Tjakrawala ◽  
Kurniati W. Andani ◽  
Linda Santioso
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Stock Ownership ◽  
Financial Leverage ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Employee Stock Ownership ◽  
Simultaneous Test

The purpose of this research is to examine and to obtain affected empirical evidence of financial leverage, firm size and employee stock ownership program (ESOP) to firm performance in manufacturing company in Indonesian Stock Exchange on 2013-2015. Independent variables in this research are Financial Leverage (DER), Firm Size and Employee Stock Ownership Program (ESOP). Dependent variables in this research are Return on Assets (ROA) and Return On Equity (ROE). The results Showed that the simultaneous test of three independent variables Significantly afftected to the ROA and ROE. The partial tests of Financial Leverage (proxy DER) and Firm Size Significantly affected to ROA and ROE. But, the results Showed that the Employee Stock Ownership Program (ESOP) did not Affect to ROA and ROE.

scholarly journals EMPLOYEE STOCK OWNERSHIP PROGRAM (ESOP) DAN NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VERIABEL INTERVENING

2020 ◽  
Vol 4 (2) ◽  
pp. 113-124
Author(s):  
Mardiyah Anugraini ◽  
Hidayatul Khusnah
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Least Square Method ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Stock Ownership ◽  
Employee Stock Ownership ◽  
Analysis Technique ◽  
Partial Least Square Method

This study aims to investigate the effect of the employee stock ownership program (ESOP) on profitability and firm value. In addition, this study also aims to see the mediating effect of profitability on the effect of ESOP on firm value. This research was conducted on manufactures listed on the Indonesia Stock Exchange (BEI) during 2015-2019. The data analysis technique in this study used the PLS (Partial Least Square) method. The results of this study indicate that the results of this study indicate that profitability partially mediates the effect of ESOP on firm value. This study also found that ESOP has a positive effect on profitability and firm value. This study also found the same thing for the effect of profitability on firm value.

The influence of capital structure on firm profitability in USA and Bangladesh engineering industry

2021 ◽  
pp. 2150029
Author(s):  
Abdelkader Derbali
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Positive Influence ◽  
Engineering Industry ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Negative Effect ◽  
Real Picture ◽  
The Impact

The aim of this paper is not only to determine and compare the nature of capital structure but also its effect on company performance of engineering industry of USA and Bangladesh. We utilize a panel data methodology based on a sample of 34 listed engineering companies of Bangladesh on Dhaka Stock Exchange (DSE) and a mixture of 34 (small, medium and large) engineering companies listed in NASDAQ in USA during the period of study from 2012 to 2019. Our empirical results indicate that the capital structure of engineering industry of USA and that of Bangladesh is different. Also, we demonstrate that capital structure has negative effect on company profitability of engineering industry of USA. Capital structure presents a negative effect on Earning per Share and Return on Assets (ROA) and positive influence on Return on Equity (ROE) and Tobin’s Q of engineering industry of Bangladesh. We conclude that the impact of capital structure on company’s profitability by only one sector and then compare the findings to know the real picture of the link. Investors, auditors, analysts and practitioners should consider many factors to examine the banking performance. Our results from this study may relate to Asian countries with similarities in engineering industry to that in Bangladesh.

scholarly journals Employee stock ownership plan and stock price crash risk

2019 ◽  
Vol 13 (1) ◽  
Author(s):  
Yan Li ◽  
Bao Sun ◽  
Shangyao Yu
Keyword(s):  
Legal System ◽  
Information Disclosure ◽  
Stock Price ◽  
Crash Risk ◽  
Stock Ownership ◽  
Investor Confidence ◽  
Employee Stock Ownership ◽  
Future Value ◽  
The Impact ◽  
Employee Stock Ownership Plan

Abstract This paper examines whether the announcement of an employee stock ownership plan (ESOP) affects stock price crash risk and the mechanism by which the ESOP may influence crash risk, using a sample of Chinese A-share firms from the period 2014 to 2017. We provide evidence that an ESOP announcement is significantly and negatively related to a firm’s stock price crash risk. An ESOP announcement sends positive signals to the market that insiders are optimistic about a firm’s future value, which helps enhance investor confidence, resist the pressure for a fire sale caused by negative information disclosure, and reduce stock price crash risk. Further research shows that larger-scale, lower-priced and non-leveraged ESOPs are more helpful in reducing crash risk. This paper sheds lights on the impact of ESOPs in a volatile market environment. It also contributes to firms’ implementation of ESOPs and the development of the legal system in capital markets.

scholarly journals HUBUNGAN PROFITABILITAS DAN DIVIDEN TUNAI DENGAN ICECUKUPAN KAS DAN LIKUIDITAS SEBAGAI MODERATING VARIABLE

2007 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
Megawati Olctorina ◽  
Michell Suharti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
The Other ◽  
Cash Dividend ◽  
Continuous Growth ◽  
Return On Equity ◽  
Other Hand ◽  
Dividend Distribution ◽  
The Relationship ◽  
A Company

<p class="Style1"><strong><em>The </em></strong><strong><em>objective of this research is to determine the relationship between profitability and the amount </em></strong><strong><em>of cash dividend policy. However this research examines the influences of cash adequate and </em></strong><strong><em>liquidity (current ratio)toward the relationship between profitability and cash dividend policy. We call </em></strong><strong><em>the influence as moderating variables. In general, investors have primarily objective that is to </em></strong><strong><em>increase their wealth by return as dividend or capital gain. On the other hand, the companyexpects </em></strong><strong><em>continuous growth and its going concern, also increase its stockholder's wealth. Factor that pre­</em></strong><strong><em>dicted influencing dividend distribution amount in this research are focused on profitability. Thus, </em></strong><strong><em>profitabiNy influences cash dividend policy in a company. However cash dividend should be paid </em></strong><strong><em>only when a company has adequate cash and good liquidity ratio. This research examines financial </em></strong><strong><em>statement of several companies are listed at Jakarta Stock Exchange for period ended December </em></strong><strong>31, </strong><strong><em>2000 until December 31, 2003. Data is collected from Jakarta Stock Exchange and Indonesia </em></strong><strong><em>Capital Market Directory 2004. This research uses statistical software TViews version 4,1 ''. The </em></strong><strong><em>result is cash adequate and liquidity moderate relationship between return on investment and cash dividen policy. On the other hand, return on equity has not significant relationship with cash dividend </em></strong><strong><em>Policy</em></strong></p><p class="Style1"><strong><em>Keyword : profitability, cash dividend, cash adequate, liquidity</em></strong></p>

scholarly journals Stock Market Increase and Decrease using Twitter Sentiment Analysis and ARIMA Model

2021 ◽  
Vol 12 (1S) ◽  
pp. 146-161
Author(s):  
S. V. Kedar
Keyword(s):  
Social Networks ◽  
Time Series ◽  
Social Networking ◽  
Sentiment Analysis ◽  
Stock Exchange ◽  
Arima Model ◽  
Forecasting Model ◽  
Company Performance ◽  
The People ◽  
A Company

With centuries and decades, people started evolving and slowly started entering into technology era. Social networks era came before everyone which connected people from far away countries. Such an example of social network are applications like Twitter, Facebook, Instagram, LinkedIn etc. Every application has its own significance. Such an application is Twitter where people tweet regarding their opinion about a topic, a person anything. The tweets regarding company its performance and people’s opinion about the stock is also tweeted. People like to invest in stocks using this data posted of social networking. This data keeps them updated about a company. In this paper, we will be using tweets related to stocks so that we can analyse sentiments of people regarding a particular stock. This sentiment analysis can provide a feedback about the company so that we will be able to understand an increase or decrease with respect to the people or company performance. In later stages, we will be comparing this analysis with ARIMA model which is time series forecasting model. ARIMA takes values of stocks and predicts its future prices based on its algorithm. Using both of these techniques a cumulative result for stock exchange will be obtained. The dataset is the fresh tweets taken from twitter and also the stock data will be imported directly for ARIMA.

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