Analysis of the Effects of Employee Share Ownership on the Creation of Financial Value of Moroccan Companies Listed on the Stock Exchange

Employee share ownership (ESOP) is a highly acclaimed international incentive and motivation mechanism for employees thanks to its virtuous impact on company performance and organizational behavior. The work proposes to study the effects of this practice on the financial performance of Moroccan companies in order to assess the impact of employee participation on the creation of financial value. To this end, the authors conducted an empirical study based on two analytical methods using SPSS software. The sample is made up of 33 companies that have published and carried out at least one employee shareholding operation in Morocco since their IPO. The financial data was extracted from the accounting statements of each company for the period from 2015 to 2019. The results show that ESOP is weakly practiced by companies, and the tests do not allow to confirm of the existence of its impact on the performance of the companies studied.

International Overview of Employee Share Ownership

Business management scholars have propositioned employee share ownership as a concept bearing different perspectives. Business management practitioners have implemented the model in varying degrees suiting their organizational needs depending on the context of the organization at the particular time. Empirical research on the impact, role, and the position of employee share ownership (ESO) has produced varying results leading to far reaching conclusions as to the importance and significance of the ESO on an organization and especially at a time when a firm is undergoing through crisis. The concept of employee share ownership has led to the development of employee share ownership plans which are implemented as direct stock/share allotment, bonuses, or profit-sharing models and plans. The employer or the principal capital holder bears an exclusive discretion in making the decision of who would receive any of these options.

Exploratory Study of the Attitudinal Effects of Employee Shareholding in Morocco

The authors conducted an empirical study in the form of a questionnaire distributed to Moroccan employees. It was completed by 217 employees and relates to the year 2020. The data collected was analyzed by the method of structural equations. The authors continued the methodology of Anderson and Gerbing. The two authors proposed a two-step analysis method. This first involves performing a confirmatory analysis of the measurement model to improve its convergent validity and discriminant validity. The results of the questionnaire survey show that there is a positive and strong link between employee share ownership on the one hand and work motivation and organizational involvement on the other. Also, the tests carried out show that employee share ownership contributes significantly to reducing the departure intention.

The CEO’s foreign experience and the CEO’s share ownership: Does tax aggressiveness matter?

This study investigates the association between the CEO’s foreign experience and the CEO’s share ownership with tax aggressiveness. The research data is sourced from financial reports and annual reports of non-financial sector companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019, obtained from www.idx.co.id. Based on purposive sampling, the total sample in this study amounted to 88 observations. Hypotheses testing in this study employed multiple regression analysis for cross-section data. This study concludes that the CEO’s foreign experience is negatively associated with tax aggressiveness, and CEO’s ownership is not associated with tax aggressiveness. Returnee CEO can adequately analyze the costs and benefits related to tax aggressiveness, and it is found that if they carry out tax aggressiveness in Indonesia, the costs incurred will be greater than the benefits received. Meanwhile, the CEO’s ownership in Indonesia is still low, so it cannot affect the tax aggressiveness level. This research indicates that the Indonesia Tax Authority need to pay attention to the CEO’s experience when conducting audits and need to cooperate with the Indonesia Financial Services Authority (OJK) to measure how the company behaves in running its business, whether the returnee CEO carry out all business ethics only or adequately those related to tax aggressiveness.

Analysis of the Impact of Employee Share Ownership on the Quality of Governance

This research assesses the “positive or negative” effects of employee share ownership on good governance in Morocco. It focuses on a lagging but constantly evolving phenomenon in Morocco due, on the one hand, to the lack of awareness of its positive effects on both individual and organizational performance and, on the other hand, on the significant delay in Moroccan legislation regarding this subject. The authors propose an index to measure good governance that they use in order to test research hypotheses. The quantitative study examines all companies listed on the Casablanca Stock Exchange over an observation period from 2015 to 2020. Through this research, the authors demonstrate the favorable effects of employee share ownership on good governance.

Race and gender wealth equity and the role of employee share ownership

PurposeThe paper discusses the relationship between systemic inequity and wealth disparity and advocates for expanding employee share ownership as a strategy to address divides in income and wealth by race and gender. It targets diverse actors including policymakers, philanthropic leaders and social investors and presents a set of policy proposals and practice ideas that seek to advance a broader understanding of employee share ownership and build the capacity of key organizations to support employee-owned businesses.Design/methodology/approachThis paper draws on data indicating positive outcomes from employee share ownership programs (ESOPs) related to job quality, economic stability and wealth-building, as well as widespread political support for ESOPs.FindingsThis paper suggests that employee share ownership can help to strengthen job quality and address race and gender income and wealth gaps. It argues that there is both public support and a range of different strategies actors can implement to expand awareness and access to different forms of employee share ownership.Research limitations/implicationsAdditional research focused on other forms of employee share ownership (beyond ESOPs) is needed to deepen understanding of how each form can play a role in addressing racial and gender wealth inequities. The paper acknowledges that despite the potential of employee share ownership to mitigate racial and gender wealth gaps, additional simultaneous strategies are required to address the range of systemic barriers that have disproportionately limited women and people of color's participation in ESOPs.Practical implicationsPolicymakers are actively seeking new proposals, while philanthropic leaders, social investors and others are also eager to build awareness and understanding of employee ownership models and develop the institutional capacity necessary to support strong employee-owned businesses. This paper directly responds to these needs and contributes to a broader collaborative effort to spread employee share ownership policies and practices that support economic recovery and lay the foundation for a more equitable and resilient economy.Social implicationsEmployee share ownership is not yet a strategy that is well understood among policymakers and the public, but it connects to and supports outcomes that are top of mind for many, including increasing local ownership and bolstering local economies, helping small business owners retire in ways that preserve local jobs and businesses, strengthening job quality and workforce development, addressing racial inequity and economic inequality and providing workers greater voice and agency. This paper seeks to connect employee ownership to these high-priority issues and support efforts by a range of organizations to implement policy and practice solutions.Originality/valueThis paper fulfills an identified need to aggregate recent research on the relationship between employee share ownership and wealth inequities on the basis of race and gender. It also offers a timely argument that employee ownership strategies can play an important role in responding to the challenges facing communities and workers – particularly women workers and workers of color – as we rebuild from the COVID-19 pandemic.

Ownership Structure and Its Impact on Dividend Policy: A Case of Non–Financial Companies in Pakistan

This article focus on one of important corporate decision that can have a great impact on the sentiments of the investor’s i.e. corporate dividend policy. This study investigates the determinants of the corporate dividend policy in the context of agency relation. The analysis of the study has based on the random sample of eighty firms from the listed companies in Pakistan, for the period of eight years ranging from 2003 to 2012. Stepwise multiple regressions have used to investigate for the relationship of ownership variables with the dividend payouts. The empirical results suggested that there has a negative relationship between the dividend payouts and managerial share ownership and thus these are alternative tools that can be used to minimize the agency problem. And also where there has positive relationship between the institutional suggested that the higher has their shareholdings the higher will be the firm dividend payouts that will leads to less availability of the cash flows with the opportunities managers to expropriate the shareholders wealth.

Pengaruh Likuiditas, Profitabilitas, Ukuran Perusahaan, dan Kepemilikan Saham Publik terhadap Pengungkapan Laporan Tahunan Pada Perusahaan Property dan Real Estate yang Terdaftar Pada Bursa Efek Indonesia Tahun 2016-2019

This research aims to determine the Effect of Liquidity, Profitability, Company Size, and Public Share Ownership on Disclosure of Annual Reports on Property and Real Estate Companies Listed on the Indonesia Stock Exchange. The data used is sourced from the annual financial statements on the Indonesia Stock Exchange in 2016-2019. And there has been a selection based on the criteria that have been determined. The population used in the study was 50 companies and the sample used amounted to 21 companies. The technique in selecting a sample is to use the Purposive Sampling technique. The study used multiple linear regression analysis methods. From this study showed that Liquidity and Profitability had no significant effect on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange because the partial test results on liquidity variables negatively 0.01 percent and significant value positive effects 0.9 percent and partial test results on profitability variables negatively 1.4 and significant value positive influence 0.1 percent which proving not always the level of liquidity and profitability of the company will have a positive effect on the disclosure report. While the Size of the Company and Public Share Ownership have a significant influence on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange because the partial test results on the company's size variables positively affect 2.1 percent and significant value negatively affect 0.03 percent and partial test results on public share ownership variables positively affect 3.6 percent. But all variables have an simultaneous effect on the Annual Report Disclosure Index on Property and Real Estate Companies Listed on the Indonesia Stock Exchange.

Problems of Legal Regulation of Issues of Redistribution of Shares in the Right of Common Property

The article is devoted to the peculiarities of legal regulation of the redistribution of shares in the right of common share ownership. The authors examine issues of the overall legal characteristics of the share ownership, the possibility of redistribution of shares, judicial practice is analyzed. It is concluded that it is necessary to improve legislative norms that regulate the possibility of redistribution of shares when using maternal funds