IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18023.html

Employee Ownership and Promotive Voice: The Roles of Psychological Ownership and Perceived Alignment of Interests

Author

Listed:
  • Cooper, Dylan A.

    (California State University, Channel Islands)

  • Fang, Tony

    (Memorial University of Newfoundland)

  • Wan, Vincent

    (Shandong University)

Abstract

Using a National Bureau of Economic Research dataset of employees of 14 United States companies with shared capitalism practices, we compare two prominent explanations of employee ownership’s influence on pro-organizational behaviors—psychological ownership and alignment of financial interests—by testing the effects of Employee Stock Ownership Plans (ESOPs) and current profit sharing on promotive voice. We conducted a path-analysis of a moderated multiple-mediation regression model using the PROCESS macro. Our sample included 16,557 participants. We find that psychological ownership partially transmits the effects of ESOP participation and current profit sharing on promotive voice. Employee decision influence strengthens the relationship between ESOP participation and psychological ownership. Perceived alignment of interests does not mediate the relationships between employee ownership and promotive voice.

Suggested Citation

  • Cooper, Dylan A. & Fang, Tony & Wan, Vincent, 2025. "Employee Ownership and Promotive Voice: The Roles of Psychological Ownership and Perceived Alignment of Interests," IZA Discussion Papers 18023, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18023
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18023.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brent Kramer, 2010. "Employee ownership and participation effects on outcomes in firms majority employee-owned through employee stock ownership plans in the US1," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 31(4), pages 449-476, November.
    2. Andrew M. Robinson & Nicholas Wilson, 2006. "Employee Financial Participation and Productivity: An Empirical Reappraisal," British Journal of Industrial Relations, London School of Economics, vol. 44(1), pages 31-50, March.
    3. repec:hal:pseose:halshs-01383778 is not listed on IDEAS
    4. James S. Ang & Rebel A. Cole & James Wuh Lin, 2000. "Agency Costs and Ownership Structure," Journal of Finance, American Finance Association, vol. 55(1), pages 81-106, February.
    5. Bryson, Alex & Clark, Andrew E. & Freeman, Richard B. & Green, Colin P., 2016. "Share capitalism and worker wellbeing," Labour Economics, Elsevier, vol. 42(C), pages 151-158.
    6. Richard B. Freeman & Douglas L. Kruse & Joseph R. Blasi, 2010. "Worker Responses to Shirking under Shared Capitalism," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 77-103, National Bureau of Economic Research, Inc.
    7. E. Han Kim & Paige Ouimet, 2014. "Broad-Based Employee Stock Ownership: Motives and Outcomes," Journal of Finance, American Finance Association, vol. 69(3), pages 1273-1319, June.
    8. Ross, Stephen A, 1973. "The Economic Theory of Agency: The Principal's Problem," American Economic Review, American Economic Association, vol. 63(2), pages 134-139, May.
    9. Richard J. Long & Tony Fang, 2012. "Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 899-927, October.
    10. Kruse, Douglas L. & Freeman, Richard B. & Blasi, Joseph R. (ed.), 2010. "Shared Capitalism at Work," National Bureau of Economic Research Books, University of Chicago Press, number 9780226056951, December.
    11. Joseph Blasi & Richard Freeman & Douglas Kruse, 2016. "Do Broad-based Employee Ownership, Profit Sharing and Stock Options Help the Best Firms Do Even Better?," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 55-82, March.
    12. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    13. Douglas L. Kruse, 1993. "Profit Sharing: Does It Make a Difference?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ps.
    14. Aaron A. Buchko, 1993. "The Effects Of Employee Ownership On Employee Attitudes: An Integrated Causal Model And Path Analysis," Journal of Management Studies, Wiley Blackwell, vol. 30(4), pages 633-657, July.
    15. Andrew Pendleton & Andrew Robinson, 2011. "Employee share ownership and human capital development: Complementarity in theory and practice," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 32(3), pages 439-457, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tao, Zimo & Zhang, Yi & Huang, Yongjian, 2026. "Zero-cost employee stock ownership incentive and corporate innovation," Global Finance Journal, Elsevier, vol. 69(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Long, Richard J. & Fang, Tony, 2013. "Profit Sharing and Workplace Productivity: Does Teamwork Play a Role?," IZA Discussion Papers 7869, IZA Network @ LISER.
    2. Sami Adwan & Alaa Alhaj-Ismail & Ranko Jelic, 2022. "Non-executive employee ownership and financial reporting quality: evidence from Europe," Review of Quantitative Finance and Accounting, Springer, vol. 59(2), pages 793-823, August.
    3. Gilberto Tadeu Lima & Jaylson Jair da Silveira, 2018. "Macrodynamic Implications of Employee Profit Sharing as Effort Elicitation Device," Working Papers, Department of Economics 2018_02, University of São Paulo (FEA-USP).
    4. Vladimir Pecheu, 2021. "Profit Sharing as a Bargaining Weapon Against Unions," Working Papers halshs-03247551, HAL.
    5. Tony Fang, 2016. "Profit sharing: Consequences for workers," World of Labour, LISER, pages 225-225, January.
    6. Noélie Delahaie & Richard Duhautois, 2019. "Profit‐Sharing and Wages: An Empirical Analysis Using French Data between 2000 and 2007," British Journal of Industrial Relations, London School of Economics, vol. 57(1), pages 107-142, March.
    7. Loris Guery & Andrew Pendleton, 2016. "Do investments in human capital lead to employee share ownership? Evidence from French establishments," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 37(3), pages 567-591, August.
    8. Abdelnour Joseph & Aubert Nicolas & Campa Domenico, 2022. "Does employee ownership decrease agency costs? Evidence from French listed companies [L'actionnariat salarié réduit-il les coûts d'agence? Le cas des entreprises françaises cotées]," Post-Print hal-03723164, HAL.
    9. Geert Braam & Erik Poutsma, 2015. "Broad-Based Financial Participation Plans and Their Impact on Financial Performance: Evidence from a Dutch Longitudinal Panel," De Economist, Springer, vol. 163(2), pages 177-202, June.
    10. Zhang, Huili & Cui, Xuegang & Xu, Lei & Wang, Kaiyan, 2024. "Non-executive employee stock ownership plans and corporate innovation efficiency: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 72(C).
    11. Gilberto Tadeu Lima & Jaylson Jair Silveira, 2021. "Evolutionary microdynamics of employee profit sharing as productivity-enhancing device," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 417-449, April.
    12. Ben Wilhelm & Nastaran Simarasl & Frederik J. Riar & Franz W. Kellermanns, 2024. "Organizational citizenship behavior: understanding interaction effects of psychological ownership and agency systems," Review of Managerial Science, Springer, vol. 18(1), pages 1-27, January.
    13. Hristos Doucouliagos & Patrice Laroche & Douglas L. Kruse & T. D. Stanley, 2020. "Is Profit Sharing Productive? A Meta‐Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 364-395, June.
    14. Heywood, John S. & Jirjahn, Uwe, 2009. "Profit sharing and firm size: The role of team production," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 246-258, August.
    15. Kim, Kyoung Yong & Patel, Pankaj C., 2017. "Employee ownership and firm performance: A variance decomposition analysis of European firms," Journal of Business Research, Elsevier, vol. 70(C), pages 248-254.
    16. Vladimir Pecheu, 2021. "Profit Sharing as a Bargaining Weapon Against Unions," AMSE Working Papers 2135, Aix-Marseille School of Economics, France.
    17. Richard J. Long & Tony Fang, 2012. "Do Employees Profit from Profit Sharing? Evidence from Canadian Panel Data," ILR Review, Cornell University, ILR School, vol. 65(4), pages 899-927, October.
    18. Uwe Jirjahn, 2018. "The adoption and termination of profit sharing for employees: does management’s attitude play a role?," Applied Economics, Taylor & Francis Journals, vol. 50(2), pages 108-127, January.
    19. David Ellerman & Tej Gonza & Gregor Berkopec, 2022. "European Employee Stock Ownership Plan (ESOP): the main structural features and pilot implementation in Slovenia," SN Business & Economics, Springer, vol. 2(12), pages 1-20, December.
    20. Kyoung Yong Kim & Pankaj C. Patel, 2020. "Broad‐Based Employee Ownership and Labour Productivity During the 2008 Recession: Evidence from Public Firms in Europe," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 396-423, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp18023. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.