The determinants of employee stock ownership: French case

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Abstract

The present study scrutinizes the factors affecting the practice of employee stock ownership. This work sheds light on the role and contribution of this practice to enhance the corporate governance systems. Our study uses a sample of 216 listed French companies in 2010. The empirical approach is a linear regression used to examine the relation between the dependent variable and the independent variables. The results show that the large companies are the most likely to practice the ESO and this is developed by a reduction in debt, the dividend distribution, and the tax rate. The focal point of this work is to go beyond the simple scope of the existence of the employee stock ownership and is interested in the conditions of its development in the French companies.

Keywords: Agency Theory, Corporate Governance, Employee Stock Ownership

Authors’ individual contribution: Conceptualization – D.B.A.; Methodology – D.B.A.; Writing – D.B.A. and Z.K.R.; Investigation – D.B.A.; Funding – D.B.A. and Z.K.R.; Resources – D.B.A. and Z.K.R.; Supervision – D.B.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30

Received: 12.03.2020
Accepted: 02.06.2020
Published online: 03.06.2020

How to cite this paper: Ben Ahmed, D., & Khelil-Rhouma, Z. (2020). The determinants of employee stock ownership: French case. Corporate Ownership & Control, 17(4), 110-116. https://doi.org/10.22495/cocv17i4art9