When Do Employees Choose to Be Represented on the Board of Directors? Empirical Analysis of Board‐Level Employee Representation in Denmark

Aleksandra Gregorič and Thomas Poulsen

British Journal of Industrial Relations, 2020, vol. 58, issue 2, 241-272

Abstract: Drawing on transaction costs economics and longitudinal data on Danish corporations, we analyse the distribution of board‐level employee representation (BLER) and the characteristics of employee directors in a context where workers have the possibility (but not also an obligation) to nominate representatives to the board of directors. We show that BLER is less likely instituted in firms with CEO or family‐related members on the board, but more likely observed in larger, older firms and in those with high firm‐specific human capital and union density. Firm‐specific human capital, qualifications and union membership also determine individual worker's probability to become a board member.

Date: 2020
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