SHARE OWNERSHIP AND
Adwan, Alaa Alhaj-Ismail, Ranko Jelic, Non-executive
employee ownership and financial reporting quality:
evidence from Europe, Review of Quantitative Finance
and Accounting, 2022.
This study provides new evidence on wether and how
employee share ownership affects the quality of
financial reporting. It confirms that firms with
more employee share ownership have lower incentives
to manipulate reported performance. That employee
share ownership at present levels is large enough
to drive employee incentives and affect corporate
policies. That the firms tend to disclose more information
when employees have larger stakes in the firm. This
is thus underscoring the role employee share ownership
can play in improving a firm's corporate governance,
and reducing the incentives to manipulate financial
L'actionnariat salarié, une dimension à
part entière de la politique RSE des entreprises
EMPLOYEE SHARE OWNERSHIP ASKS FOR ITS PLACE IN THE
SOCIAL ECONOMY AND SUSTAINABLE DEVELOPMENT
European employee share ownership wants to be recognized
as a part of the social economy, together with co-operatives,
mutuals, associations and foundations.
The development of employee share ownership is a trend of major
importance in the current world social context.
Employee owners, as neither just employees nor just
shareholders but co-entrepreneurs, are closely related
to workers’ co-operatives. Therefore, EFES (the
European Federation of Employee Share Ownership)
and CECOP (European Confederation of Workers’ Co-operatives,
Social Co-operatives and Participative Enterprises)
are partners: EFES asks for its place within the
social economy, beside CECOP.
In its mission statement,
EFES states "employee share ownership and participation
make a significant contribution to economic and
social progress. They combine excellence in labour
productivity and business performance with a broad,
constructive social contribution". From the
start, employee share ownership highlighted its
specificity: indeed, its primary concern is neither
patrimonial, nor financial, but rather sustainable
development and participation in decision-making
in the company.
employee share ownership gives enterprises roots and balance.
Together with other forms of participation, it leads
to better work and more efficiency. "EFES will
promote wide-spread wealth, business excellence
and humanity (in the workplace and in it’s environment)
to go hand in hand."
EFES is therefore an open organisation - gathering,
among its members, several important Trade Unions.
employee share ownership and participation proceed
from, but also contribute to corporate social responsibility
and sustainable development.
Today, being a company's main shareholder requires
but a little percentage of the shareholding. In
other cases 5 or 10 % of the shares must be gained
for employee shareholders to consider themselves
as co-entrepreneurs and access to decision-making.
Whenever the rate reaches over 25 to 30%, it is
almost always a situation of co-enterprise.
employee share ownership is also likely to bring
a substantial contribution to economic and social
development and to employment in Europe. Generally
speaking employee share ownership and participation
improves growth, adding up to 1% to the national
product, on an annual basis. At European scale,
this is potentially millions of new jobs.Europe
wide, collective social responsibility should see
employee share ownership as a major element in the
European strategy for employment.
For all those reasons, we feel that employee share
ownership must be integrated as a part of the social
economy and its objectives in terms of sustainable
development, social integration and cohesion.
Marc Mathieu, May 10th, 2002.
information and contact
EFES - EUROPEAN
FEDERATION OF EMPLOYEE SHARE OWNERSHIP
FEAS - FEDERATION EUROPEENNE DE L'ACTIONNARIAT SALARIE
Avenue Voltaire 135, B-1030 Brussels
Tel: +32 (0)2 242 64 30 - Fax: +32 (0)2 808 30 33
Web site: www.efesonline.org
EFES' objective is to act as the umbrella organization
of employee owners, companies and all persons, trade
unions, experts, researchers, institutions looking
to promote employee share ownership and participation