The Economic Consequences of one-third Codetermination in German Supervisory Boards: First Evidence for the Service Sector from a New Source of Enterprise Data

Franziska Boneberg ()
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Franziska Boneberg: Institute of Economics, Leuphana University of Lüneburg, Germany

No 177, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: There remains great uncertainty about the economic consequences of co-determination in German supervisory boards. Because employee representation on company boards is mandatory, depending on the legal form and size of the company, a direct comparison of those companies that apply co-determination and those that do not has not yet been possible. However, based on a new kind of combined data set, this paper conducts such a direct comparison, leading to more reliable results about the economic consequences of workers’ participation on two core performance indicators: productivity and profitability. Accordingly, the existence of a co-determined supervisory board seems to positively affect productivity, but not profitability.

Keywords: co-determination; board-level employee representation; Germany (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-06
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Citations: View citations in EconPapers (2)

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