 Unternehmensmitbestimmung und langfristige Investitionen in deutschen UnternehmenSigurt Vitols and Robert Scholz WSI-Mitteilungen, 2021, vol. 74, issue 2, 87-97 Abstract: A recurring debate in the academic community and among policymakers is whether financial markets are plagued by short-termism. Short-term investors pressure the companies they are investing in to pay out available resources in the form of stock buybacks or increased dividends, rather than investing in long-term projects, even when such long-term investments are expected to be quite profitable in the future. However, there has been hardly any investigation into the influence that board-level employee representation (or BLER for short) may have on company investment policies. This article makes two contributions to the literature. First, it uses a unique six-component measure of codetermination strength in German companies, the Mitbestimmungsindex (MB-ix), which is a very differentiated indicator for worker influence in corporate governance than most quantitative studies. Second, robust regression models are used to deal with the strong influence of extreme outliers in the data. Based on a sample of more than 200 companies listed on the German stock market between 2006 and 2018, it is shown that the strength of BLER (as measured by the MB-ix) is significantly (and positively) related to the rate of capital investment. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:nms:wsimit:10.5771/0342-300x-2021-2-87 Ordering information: This journal article can be ordered from DOI: 10.5771/0342-300X-2021-2-87 Access Statistics for this article More articles in WSI-Mitteilungen from Nomos Verlagsgesellschaft mbH & Co. KG |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.