Employee Stock Ownership Plans: The Role of Employee Perceptions as Motivation

Authors

  • Greg Filbeck University of Toledo
  • Raymond Gorman Miami University
  • Sandra Fink The Andersons, Inc.

Abstract

Studies  indicate  that the primary  reason for  implementing  employee stock  ownership plans (ESOPs) is to increase employee motivation. However, few studies have assessed the relationship between participation in ESOPs and employees perceiving that their efforts affect their company's value. Our interest in this study is to determine whether the assumptions of management about the effectiveness of ESOPs on employee motivation prove correct. By comparing  survey  responses   to  questions  concerning  employee perceptions,   we  can  determine the importance of the differences that exist between employees of  small  and  large corporations. We find that the responses of small corporation employees are usually indistinguishable from those of large corporation employees.  This result is consistent with our claim that prospect theory may help in explaining why company  managers  should consider adding ESOPs to their benefits packages.

References

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Published

1999-06-17

Issue

Vol. 10 No. 2 (1999)

Section

Articles

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How to Cite

Employee Stock Ownership Plans: The Role of Employee Perceptions as Motivation. (1999). Journal of Small Business Strategy (archive Only), 10(2), 68-77. https://libjournals.mtsu.edu/index.php/jsbs/article/view/416