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The Determinants of Investment in Employee Owned Firms: Evidence from France


  • S Estrin
  • D Jones


In this paper we use a large panel data set to test competing hypotheses about investment in employee owned firms (EOFs), especially the view that EOFs will invest less. Most of the variables stressed by labour-management theorists as inhibiting investment are found not to play any role in practice, but the volume of investment is found to be positively associated with the share of investment funded externally. This highlights the crucial role of external finance in supporting investments in EOFs.

Suggested Citation

  • S Estrin & D Jones, 1992. "The Determinants of Investment in Employee Owned Firms: Evidence from France," CEP Discussion Papers dp0087, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0087

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    References listed on IDEAS

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    Cited by:

    1. Derek C. Jones & Takao Kato & Jeffrey Pliskin, 1994. "Profit Sharing and Gainsharing: A Review of Theory, Incidence, and Effects," Economics Working Paper Archive wp_125, Levy Economics Institute.
    2. Kazuhiro Ohnishi, 2009. "Strategic Commitment and Three-Stage Games with Labour-Managed and Profit-Maximizing Firms," Finnish Economic Papers, Finnish Economic Association, vol. 22(2), pages 63-74, Autumn.
    3. Francesca Gagliardi, 2009. "Financial development and the growth of cooperative firms," Small Business Economics, Springer, vol. 32(4), pages 439-464, April.

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