Employees

Mergers, Spin-offs, and Employee Incentives

Defined Contribution Plans and the Challenge of Financial Illiteracy

Retirement investing in the United States has changed dramatically. The classic defined-benefit (DB) plan has largely been replaced...

Corporate Governance, Corporate and Employment Law, and the Costs of Expropriation

Private Equity and Human Capital Risk

We study the human-capital effects of private equity buyouts in Germany. We conduct matched-sample difference-in-differences estimations at the...

Higher Purpose, Incentives and Economic Performance

How does organizational higher purpose affect employee behavior and firm output? We develop an optimal-contracting model which shows that pursuing...

Employee Satisfaction, Labor Market Flexibility, and Stock Returns Around the World

We study the relationship between employee satisfaction and stock returns across 30 countries. Employee satisfaction is associated with superior...

Managers, Workers, and Corporate Control

If management has high private benefits and a small equity stake, managers and workers are natural allies against takeover threats. Two forces are at...

Exit vs. Voice

We study the relative effectiveness of exit (divestment and boycott) and voice (engagement) strategies in promoting socially desirable...

Labor Representation in Governance as an Insurance Mechanism

We hypothesize that labor participation in governance helps improve risk sharing between employees and employers. It provides an ex-post mechanism to...

Personal and Organizational Higher Purpose, Corporate Governance and Shareholder Value: Survey Results

This paper reports the findings of a recent survey of 1019 individuals to learn about their commitment to and perceived value from personal and...

Efficiency Arguments for the Collective Representation of Workers: A Sketch

The dominant agency-cost paradigm for the analysis of corporate law is based on the proposition that the welfare of society is best met by rules which...

The Additional Costs of CEO Compensation: The Effect of Relative Wealth Concerns of Employees

Do employees who compare themselves to the CEO matter for executive compensation? We hypothesize that employees have relative wealth concerns and...