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Labor empowerment in corporate boards: The devil is in the details

Author

Listed:
  • Harnay, Sophie
  • Manseri, Riyad
  • Rebérioux, Antoine

Abstract

In 2013, mandatory worker representation on French corporate boards was enacted. We examine the way employee directors have been incorporated within the board machinery. Our empirical results indicate that employee representatives have a limited access to board committees. This result casts doubt on the ability of employee directors to significantly influence corporate governance. Consistent with this analysis, we do not find any significant impact, either positive or negative, of codetermination on firm performance.

Suggested Citation

  • Harnay, Sophie & Manseri, Riyad & Rebérioux, Antoine, 2024. "Labor empowerment in corporate boards: The devil is in the details," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Early Vie, pages 1-29.
    • Handle: RePEc:zbw:espost:308018
    DOI: 10.1111/irel.12363
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    File URL: https://www.econstor.eu/bitstream/10419/308018/1/Industrial%20Relations%20-%202024%20-%20Harnay%20-%20Labor%20empowerment%20in%20corporate%20boards%20The%20devil%20is%20in%20the%20details%281%29.pdf
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    More about this item

    Keywords

    codetermination; employee directors; industrial relations; corporate governance; board committees;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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