Analysis of the economic differences between capitalist and labour‐owned enterprises

Josefina Fernández Guadaño

International Journal of Social Economics, 2009, vol. 36, issue 6, 679-691

Abstract: Purpose - In recent years, an increasing interest in the participative practices of the workpeople in their companies has taken place in the European Union. Taking advantage of this situation, the purpose of this paper is to show additional evidence of the benefits from companies with majority worker's capital participation as opposed to firms that do not follow this approach. Bearing in mind, also, that Spain is the only European country with the juridical form of financial majority participation of the workpeople, in order to recommend it in the European context according to the reached results. Design/methodology/approach - To study whether or not there are differences in the two types of companies, a logistic regression model is used. Findings - In this study, results indicate that business profitability (return on assets), productivity and equity capital coefficient are not significant variables for the purpose of determining the distinguishing features of labour‐owned firm (LOF) as against capitalist firm. The only variable of those originally included which has turned out to be significant is the financial profitability (return on equity). Practical implications - Initial proposal: specific European law governing investment capital of employees. Originality/value - The study will be useful to show the characteristics of Spanish LOFs (operating under their own legal structure) and their benefits.

Keywords: Return on capital employed; Spain; Business enterprise; Business analysis; Employees (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:ijsepp:v:36:y:2009:i:6:p:679-691

DOI: 10.1108/03068290910956912

Access Statistics for this article

International Journal of Social Economics is currently edited by Professor Terence Garrett

More articles in International Journal of Social Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().