Do investments in human capital lead to employee share ownership? Evidence from French establishments

Guery, L.; Pendleton, A.

doi:10.1177/0143831x14551999

Do investments in human capital lead to employee share ownership? Evidence from French establishments

Guery, L.; Pendleton, A.

Authors

L. Guery

A. Pendleton

Abstract

Investments in human capital can create a hold-up problem whereby both employers and employees exploit the bargaining weaknesses of the other. Employee share ownership (ESO) can mitigate this hold-up problem because it can align interests, develop loyalty, signal good-will and lock in employees. Previous studies have shown positive relationships between company investments in human capital and the use of ESO consistent with this argument but have been unable to identify the direction of causality. Using panel data from the French REPONSE survey, the findings indicate that significant and continuous investments in human capital take place prior to the implementation of ESO.

Citation

Guery, L., & Pendleton, A. (2016). Do investments in human capital lead to employee share ownership? Evidence from French establishments. Economic and Industrial Democracy, 37(3), 567-591. https://doi.org/10.1177/0143831x14551999

Journal Article Type	Article
Acceptance Date	Aug 14, 2014
Online Publication Date	Oct 1, 2014
Publication Date	Aug 1, 2016
Deposit Date	Feb 3, 2015
Publicly Available Date	Feb 10, 2015
Journal	Economic and Industrial Democracy
Print ISSN	0143-831X
Electronic ISSN	1461-7099
Publisher	SAGE Publications
Peer Reviewed	Peer Reviewed
Volume	37
Issue	3
Pages	567-591
DOI	https://doi.org/10.1177/0143831x14551999
Keywords	Employee share ownership, Human capital, Human resource management, REPONSE survey, Training.
Public URL	https://durham-repository.worktribe.com/output/1446062

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Copyright Statement
Guery, L. & Pendleton, A. (2016). Do investments in human capital lead to employee share ownership? Evidence from French establishments. Economic and Industrial Democracy 37(3): 567-591. Copyright © 2014 The Author(s). Reprinted by permission of SAGE Publications.