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Codetermination: the Necessary Presence of Workers on the Board. A Mathematical Model

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  • Forcillo, Donato

Abstract

We analyse in a firm the possible choice between two systems of corporate governance: the one-tier board, a structure commonly used in the Anglo-American world, and the system of Codetermination, a two-tier board with the presence of workers' representatives in the supervisory board, a model commonly adopted by firms in Germany. The aim is to fill a gap present in the current literature, the absence of a mathematical model that explains how works the governance's system of Codetermination presents not only in the German world, but expanding in many other European countries, as a result of the recent EU directives, which emphasize the need to involve workers in company decisions.

Suggested Citation

  • Forcillo, Donato, 2017. "Codetermination: the Necessary Presence of Workers on the Board. A Mathematical Model," MPRA Paper 81935, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81935
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    1. Forcillo, Donato, 2017. "Codetermination: the Presence of Workers on the Board. A Depth Analysis," MPRA Paper 81936, University Library of Munich, Germany.

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    More about this item

    Keywords

    Corporate Governance; Codetermination; Labor Representation; Workers; Human Capital; Single Board; One-Tier Board; Monitoring; Welfare;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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