EMPLOYEE SHARE OWNERSHIP AND
CORPORATE SOCIAL RESPONSIBILITY

31.01.2024: Employee Financial Participation and Corporate Social and Environmental Performance: Evidence from European Panel Data, Braam, G., Poutsma, E., Schouteten, R. & Heijden, B.V.D., British Journal of Industrial Relations, January 2024, 1–29.
First, our findings show positive and significant lagged effects of share ownership plans on CSP. The findings also show that the positive effect of broad-based employee share ownership on CSP is magnified when the employees own a larger stake of the company, indicating that employee share ownership increases a company's orientation on long-term sustainable value creation.

05.12.2023: Executive and non-executive employee ownership and bank risk: Evidence from European banks, Laetitia Lepetit, Phan Huy Hieu Tran, Thu Ha Tran, Université de Limoges and Université Bourgogne Franche-Comté, France, Quarterly Review of Economics and Finance Volume 92, December 2023, Pages 291-31992 (2023), Elsevier.
To examine the impact of both executive and non-executive employee ownership on bank risk, as well as to explore the different underlying channels, we use information in the European Federation of Employee Share Ownership (EFES) database. Using data from 2005 to 2019, we find that both executive and non-executive ownership are associated with lower bank risk, depending on employee ability and incentives to take risks. We find that an increase in executive and non-executive employee ownership leads to a decrease in insolvency risk and overall bank risk. Therefore, our results provide evidence that holding shares incentivizes executive and non-executive bank employees to pursue strategies that reduce risk. Our results indicate that policymakers should encourage broad-based employee ownership plans in the banking industry.

17.03.2022: Non-executive employee ownership and financial reporting quality: evidence from Europe, Sami Adwan, Alaa Alhaj-Ismail, Ranko Jelic, 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 statements.

For 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)2 791 96 00
E-mail: efes@efesonline.org
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 in Europe.