The Scope, Nature, and Effects of Employee Stock Ownership Plans in Japan

Type of Work

Article

Date

1-1993

Journal Title

Industrial and Labor Relations Review

Journal ISSN

0019-7939

Journal Volume

46

Journal Issue

2

First Page

352

Last Page

367

DOI

10.1177/001979399304600209

Abstract

Using data for various years, including new data for 1973-84, the authors examine the scope, nature, determinants, and effects of Japanese employee stock ownership plans (ESOPs). In 1988, of firms listed on Japan's eight stock exchange markets, 91 percent had an ESOP, and the average (nonexecutive) empl oyee plan participant owned stock worth about $14,000. The authors find that firms were more likely to adopt ESOPs when recent business performance was below average, the capital/labor ratio was relatively low, and employment growth was relatively fast. ESOPs apparently enhanced enterprise productivity.

Notes

JEL Classification: J53, J33

Hamilton Areas of Study

Economics

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