Profit-Sharing and the Financial Performance of Companies: Evidence from U.K. Panel Data
AbstractThis paper examines the dynamic relationship between profit sharing and profitability in a sample of U.K. firms during the 1980s. The estimates indicate a positive short-run effect of the introduction of profit sharing schemes on the financial performance of companies. This relationship is evident even if unobserved firm-specific fixed effects and potential endogeneity of profit sharing are controlled for. Quite apart from its widely recognized influence on productivity and industrial relations, profit sharing is arguably a financially attractive option for firms. There is also evidence of the persistence of profitability in U.K. profit sharing firms. Copyright 1994 by Royal Economic Society.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 104 (1994)
Issue (Month): 426 (September)
Contact details of provider:
Postal: Office of the Secretary-General, School of Economics and Finance, University of St. Andrews, St. Andrews, Fife, KY16 9AL, UK
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Loukas Balafoutas & Martin G. Kocher & Louis Putterman & Matthias Sutter, 2010.
"Equality, equity, and incentives: An experiment,"
Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS)
10-13, School of Economics, University of East Anglia, Norwich, UK..
- Balafoutas, Loukas & Kocher, Martin G. & Putterman, Louis & Sutter, Matthias, 2010. "Equality, Equity and Incentives: An Experiment," IZA Discussion Papers 5204, Institute for the Study of Labor (IZA).
- Loukas Balafoutas & Martin G. Kocher & Louis Putterman & Matthias Sutter, 2010. "Equality, Equity and Incentives: An Experiment," Working Papers 2010-26, Faculty of Economics and Statistics, University of Innsbruck.
- Loukas Dalafoutas & Martin G. Kocher & Louis Putterman & Matthias Sutter, 2010. "Equality, Equity and Incentives: An Experiment," Working Papers 2010-13, Brown University, Department of Economics.
- FitzRoy, Felix R. & Kraft, Kornelius, 1995. "On the choice of incentives in firms," Journal of Economic Behavior & Organization, Elsevier, vol. 26(1), pages 145-160, January.
- Green, Colin P. & Heywood, John S., 2010.
"Profit sharing and the quality of relations with the boss,"
Elsevier, vol. 17(5), pages 859-867, October.
- Colin Green & J S Heywood, 2008. "Profit Sharing and the Quality of Relations with the Boss," Working Papers 596078, Lancaster University Management School, Economics Department.
- Bruce A Rayton & Jonathan S Seaton, .
"The Size of Employee Stakeholding in Large UK Corporation,"
97/2, Faculty of Economics and Social Sciences, The Nottingham Trent University.
- Bruce A. Rayton & Jonathan S. Seaton, 1999. "The size of employee stakeholding in large UK corporations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 259-266.
- Bruce A. Rayton & Jonathan S. Seaton, 1996. "The Size of Employee Stakeholding in Large UK Corporations," Labor and Demography 9612001, EconWPA, revised 28 Jan 1999.
- Kraft, Kornelius & Ugarkovic, Marija, 2006. "Profit sharing and the financial performance of firms: Evidence from Germany," Economics Letters, Elsevier, vol. 92(3), pages 333-338, September.
- Claudia Keser & Claude Montmarquette, 2011. "Voluntary versus Enforced Team Effort," Games, MDPI, Open Access Journal, vol. 2(3), pages 277-301, August.
- H. Naci Mocan & Deborah Viola, 1997. "The Determinants of Child Care Workers' Wages and Compensation: Sectoral Differences, Human Capital, Race, Insiders and Outsiders," NBER Working Papers 6328, National Bureau of Economic Research, Inc.
- Rayton, Bruce A., 2003. "The residual claim of rank and file employees," Journal of Corporate Finance, Elsevier, vol. 9(1), pages 129-148, January.
- Bruce A. Rayton, 1996.
"Firm Performance and Compensation Structure: Performance Elasticities of Average Employee Compensation,"
Labor and Demography
9607001, EconWPA, revised 15 Apr 1998.
- Rayton, Bruce A., 2003. "Firm performance and compensation structure: performance elasticities of average employee compensation," Journal of Corporate Finance, Elsevier, vol. 9(3), pages 333-352, June.
- Kato, Takao & Kauhanen, Antti & Salmi, Julia, 2013. "Empirical Evidence on the Dynamics of Incentive Plans," ETLA Working Papers 20, The Research Institute of the Finnish Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.