| Author: | Park, S. Song, M. |
| Title: | Employee stock ownership plans, firm performance, and monitoring by outside blockholders |
| Journal: | Financial Management
1995 : WINTER, VOL. 24:4, p. 52-65 |
| Index terms: | FINANCIAL MANAGEMENT STOCK OWNERSHIP COMPANIES |
| Language: | eng |
| Abstract: | Employee Stock Ownership Plans (ESOPs) tend to entrench incumbent managers and enhance employee incentives, so the effect of an ESOP on the sponsoring firm is important. The authors examine long-term performance of Esop firms and find significant improvements in their year-end performance. This finding supports the positive effects of ESOPs on the performance of the firm overall. The authors hypothesize that the performance of the ESOP depends on the efficiency of the ownership structure of the firm as a monitoring mechanism. |
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