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 productivity.” [FinanceProfessor.com Annotation]
Content: Article
Authors: Olubunmi Faleye, Randall Morck, Vikas Mehrotra
Source: Social Science Research Network (SSRN)
Subjects: Corporate Governance, Finance
Authors: Olubunmi Faleye, Randall Morck, Vikas Mehrotra
Source: Social Science Research Network (SSRN)
Subjects: Corporate Governance, Finance
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