IDEAS home Printed from https://ideas.repec.org/a/ids/ijmede/v23y2024i2p155-170.html
   My bibliography  Save this article

Impact of employee stock ownership on firm financial performance: does corporate social responsibility matter?

Author

Listed:
  • Zyed Achour

Abstract

The debate surrounding the relationship between employee stock ownership (ESO) and firm financial performance (FFP) remains contentious. While previous research has viewed this connection as direct, this study proposes an indirect relationship. Drawing on agency theory, property rights theory, and a resource-based view, we argue that employee stock ownership fosters enhanced financial performance. Additionally, building on existing theoretical and empirical literature, we hypothesise a positive association between CSR and FFP. Our analysis of panel data from 72 listed French companies (2010-2020) confirms a significant relationship between ESO and FFP. Moreover, our findings suggest CSR acts as a partial mediator in this relationship. These results shed light on how ESO and financial performance interact, with CSR playing a mediating role. Policymakers, practitioners, and academics can use this insight to develop strategies for inclusive, sustainable corporate governance that maximise value for shareholders and society.

Suggested Citation

  • Zyed Achour, 2024. "Impact of employee stock ownership on firm financial performance: does corporate social responsibility matter?," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 23(2), pages 155-170.
    • Handle: RePEc:ids:ijmede:v:23:y:2024:i:2:p:155-170
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=139275
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijmede:v:23:y:2024:i:2:p:155-170. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=89 .

    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.