Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Employee ownership as a signal of management quality

Abstract : The employees' decision to become shareholder of the company they work for can be a consequence of employers' matching contribution in company stock. From a behavioral perspective, employees would regard these contributions as an implicit investment advice made by their employer. This paper adopts another viewpoint. Since employee ownership can be used as an entrenchment mechanism, we suggest that employer's matching policy can be considered as an imperfect signal of management quality. This paper suggests that employee ownership can be used by managers to compensate their management skills to the market. It recommends that employee ownership policy should not be influenced by the managers.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [32 references]  Display  Hide  Download
Contributor : Anne Peguin-Feissolle <>
Submitted on : Monday, November 8, 2010 - 4:24:17 PM
Last modification on : Friday, July 17, 2020 - 8:58:54 AM
Long-term archiving on: : Wednesday, February 9, 2011 - 3:02:33 AM


Files produced by the author(s)


  • HAL Id : halshs-00534025, version 1


Nicolas Aubert, André Lapied, Patrick Rousseau. Employee ownership as a signal of management quality. 2010. ⟨halshs-00534025⟩



Record views


Files downloads