| Employee Stock Ownership Plan and Firm Value: A Study on the Effects of Company Contribution |
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Chan Hong Park, Hak Kon Kim, Doo Jin Ryu, Kwang Woo Park |
| 우리사주제도와 기업가치 |
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박찬홍, 김학건, 류두진, 박광우 |
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| Abstract |
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This study examines the effects of company contribution (e.g., employee stock option plan, company contribution plan, and leveraging ESOP), and the largest shareholder on firm value when firms have ESOP. We examine all listed companies on the Korea Exchange and focus on the 1,091 firm-year observations (448 listed companies), which maintain a status as a listing company and simultaneously holding an employee shares from 2008 to 2011. We find that firms adopting the employee stock option plan, company contribution plan, and leveraging ESOP tend to have a higher Tobin’s q than firms without the employee stock option plan, company contribution plan, and leveraging ESOP. Meanwhile this study also finds the relationship between stake in the largest shareholder and corporate value of the company that conducted the ESOP scheme to be positively adjusted by company contribution. Our results suggest that firms should focus more on the employee shareholder’s sense of ownership and involving employees’ interest in the management issues through employee participation. Profit sharing plan could be one way rather than increasing a size of employee shares. Thus, the government’s active involvement such as promotion and guidance and the management and labor union’s efforts are all required to support the company’s contribution for ESOP and company contri-bution. |
| Key Words:
기업가치,무상출연,우리사주제도,이익배분,종업원 경영참여,Company Contribution,Employee Participation,ESOP,Firm Value,Profit Sharing |
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