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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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    References listed on IDEAS

    as
    1. François Belot & Timothée Waxin, 2022. "Mandatory employee board representation: Good news for family firms?," Post-Print hal-04264297, HAL.
    2. repec:dau:papers:123456789/12816 is not listed on IDEAS
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    5. Kirill Borusyak & Xavier Jaravel & Jann Spiess, 2024. "Revisiting Event-Study Designs: Robust and Efficient Estimation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(6), pages 3253-3285.
    6. Gormley, Todd A. & Gupta, Vishal K. & Matsa, David A. & Mortal, Sandra C. & Yang, Lukai, 2023. "The Big Three and board gender diversity: The effectiveness of shareholder voice," Journal of Financial Economics, Elsevier, vol. 149(2), pages 323-348.
    7. Belot, François & Waxin, Timothée, 2022. "Mandatory employee board representation: Good news for family firms?," International Review of Law and Economics, Elsevier, vol. 71(C).
    8. Belot, François & Ginglinger, Edith & Slovin, Myron B. & Sushka, Marie E., 2014. "Freedom of choice between unitary and two-tier boards: An empirical analysis," Journal of Financial Economics, Elsevier, vol. 112(3), pages 364-385.
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    Full references (including those not matched with items on IDEAS)

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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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