 The nonlinear relationship between employee stock ownership plans and firm performance: Evidence from ChinaApostolos Dasilas Journal of Business Research, 2024, vol. 173, issue C Abstract: Two opposing forces (positive and negative) have been theoretically expounded to explain the relationship between employee stock ownership plans (ESOPs) and firm performance. However, the direction of this relationship remains a puzzle, especially in countries where state ownership is significant. This paper draws on the “Guidance on the pilot implementation of employee stock ownership plan (ESOP) by listed companies” issued by the China Securities Regulatory Commission (CSRC) to assess the moderating effect of state ownership on the relationship between ESOPs and firm performance. Using employee and executive stock ownership data from 620 Chinese listed companies between 2014 and 2020, I find an inverted U-shaped relationship between employee stock ownership and firm performance. However, the inverted U-shaped relationship holds only for non-state-owned Chinese firms. Finally, a U-shaped relationship between executive ownership and company performance has been found. Keywords: Employee stock ownership plan; Executive ownership; Employee engagement; Firm performance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:173:y:2024:i:c:s0148296323008299 DOI: 10.1016/j.jbusres.2023.114470 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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