Beyond Dichotomy: The Curvilinear Impact of Employee Ownership on CEO entrenchment

Xavier Hollandts (), Nicolas Aubert (), Abdelmehdi Abdelhamid () and Victor Prieur
Additional contact information
Xavier Hollandts: CRCGM et IFGE - Kedge Business School - Kedge BS - Kedge Business School
Abdelmehdi Abdelhamid: CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]
Victor Prieur: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: Employee stock ownership gives employees a voice and therefore may have a major impact on corporate governance. Thus, employee stock ownership may be a powerful mean to protect CEOs from both market for corporate control and dismissal threat. In this paper, we examine the relationship between employee stock ownership and CEO entrenchment. Following the recent French legislative changes, we use a comprehensive panel dataset of the major French listed companies over the 2009-2012 period. We document inverted U shaped relationships between employee stock ownership and CEO entrenchment. Board employee ownership representation also plays a role and increases the inflexion points of these curvilinear relationship.

Keywords: CEO entrenchment; employee stock ownership; corporate governance (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-bec and nep-cfn
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01495427v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Management international = International management = Gestión internacional, 2018, 22 (2), pp.112-127. ⟨10.7202/1058165ar⟩

Downloads: (external link)
https://shs.hal.science/halshs-01495427v2/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01495427

DOI: 10.7202/1058165ar

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().