When Labor Has a Voice in Corporate Governance
Employees may not make good owners after all! Faleye,Mehrotra,and Morck study firms where there are large blocks of employee owned shares that ARE VOTED. Their findings may surprise some people: “Relative to otherwise similar firms, labor-controlled publicly traded firms invest less, take fewer risks, grow more slowly, create fewer new jobs, have worse free cash flow problems, and exhibit lower labor and total factor … [ Read more ]
Content: Article | Authors: Olubunmi Faleye, Randall Morck, Vikas Mehrotra | Source: Social Science Research Network (SSRN) | Subjects: Corporate Governance, Finance