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Employee Share Schemes in Europe. The Influence of US Multinationals

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Author Info
Erik Poutsma () (Nijmegen School of Management, Radboud University Nijmegen)
Paul E. M. Ligthart (PARTNER Research Group, Nijmegen School of Managemen)
Roel Schouteten (PARTNER Research Group, Nijmegen School of Management)
Abstract

The debate on convergence and globalisation of national economies emphasises the role of Multinational Corporations (MNCs) with regard to the export of home-country policies in countries where they have their plants. MNCs set a process of change in motion in which local companies attempt to catch up with the more internationalised companies, particularly those from the Anglo-Saxon world. This process is called Anglo-Saxonisation. In this paper we focus on share (option) schemes. Analysing a European survey of HRM practices in workplaces in selected countries, we can trace a US-MNCs effect in the case of the narrow-based executive type of share (option) schemes in continental Europe. We can also trace a minor effect in the case of broad-based schemes open to all employees. The diversity we find in predictors between countries and the strong significant effects of country suggest that local corporate and institutional factors are more important in the case of broad-based share schemes than in the case of the narrow, executive type of share schemes.

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Article provided by Rainer Hampp Verlag in its journal Management Revue - The international Review of Management Studies.

Volume (Year): 16 (2005)
Issue (Month): 1 ()
Pages: 99-122
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Handle: RePEc:mro:mamere:v:16:y:2005:i:1:p:99-122

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Related research
Keywords: Employee Share Ownership Stock Options Human Resource Management Multinationals Europe

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General

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  1. McNabb, Robert & Whitfield, Keith, 1998. "The Impact of Financial Participation and Employee Involvement on Financial Performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 171-87, May. [Downloadable!] (restricted)
  2. Jones, Derek C & Kato, Takao, 1995. "The Productivity Effects of Employee Stock-Ownership Plans and Bonuses: Evidence from Japanese Panel Data," American Economic Review, American Economic Association, vol. 85(3), pages 391-414, June. [Downloadable!] (restricted)
  3. Baker, George P & Jensen, Michael C & Murphy, Kevin J, 1988. " Compensation and Incentives: Practice vs. Theory," Journal of Finance, American Finance Association, vol. 43(3), pages 593-616, July. [Downloadable!] (restricted)
    Other versions:
  4. Bebchuk, Lucian Arye & Fried, Jesse & Walker, David I, 2001. "Executive Compensation in America: Optimal Contracting or Extraction of Rents," CEPR Discussion Papers 3112, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Robert W Drago & John S. Heywood, 1995. "The Choice of Payment Schemes: Australian Establishment Data," Working papers _006, University of Wisconsin - Milwaukee. [Downloadable!]
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  6. Lucian Arye Bebchuk & Jesse M. Fried & David I. Walker, 2001. "Executive Compensation in America: Optimal Contracting or Extraction of Rents?," NBER Working Papers 8661, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Lucian Bebchuk & Jesse Fried & David Walker, 2001. "Executive Compensation in America: Optimal Contracting or Extraction of Rents?," Berkeley Olin Program in Law & Economics, Working Paper Series 1030, Berkeley Olin Program in Law & Economics. [Downloadable!]
  8. Phillip M Rosenzweig & Nitin Nohria, 1994. "Influences on Human Resource Management Practices in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 25(2), pages 229-251, June. [Downloadable!] (restricted)
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