EMPLOYEES PRESENTED BY XU MIAO.GE YANG
EMPLOYEES PRESENTED BY XU MIAO, GE YANG
GOMFARATTUL AND INTERNATIONAL CORPORATE GOVERNANCE Ruth V.Aguilera Gregory Jackson
COMPARATIVE AND INTERNATIONAL CORPORATE GOVERNANCE Ruth V. Aguilera & Gregory Jackson
Comparative and International Corporate Governance Relationship between employee voice at board level and corporate performance Constraining hypothesis Facilitating hypothesis Constraining hypothesis Zero-sum or negative-sum relationship ·Agency theory Germany:Supervisory board-factional benches,diluting board's powers,collusion between management and employees Agency cost:unable to create a blockholding balance of power between stockholders and the employee block Market-driven forms of ownership and finance->Market- driven forms of employment Faster employment adjustment,shorter job tenures and stronger use of performance-based pay systems
Comparative and International Corporate Governance • Relationship between employee voice at board level and corporate performance • Constraining hypothesis • Facilitating hypothesis • Constraining hypothesis • Zero-sum or negative-sum relationship • Agency theory • Germany: Supervisory board-factional benches, diluting board’s powers, collusion between management and employees • Agency cost: unable to create a blockholding balance of power between stockholders and the employee block • Market-driven forms of ownership and finance=>Market- driven forms of employment • Faster employment adjustment, shorter job tenures and stronger use of performance-based pay systems
Comparative and International Corporate Governance Constraining hypothesis Dispersed ownership to a weaker role of employees Shareholders prefer firms to focus on a single business or core competence. Equity-oriented performance targets create new questions of performance criteria,time horizons,and disciplining poorly performing units. Performance-based pay raises risks of contingent pay. Empirical study-UK:Corporate practices oriented to shareholder- value do have a constraining influence on commitment-based human resource management policies and outcomes. Core rationale:conflict of interests between labors and shareholders No systematic evidence exists to suggest that strong employee voice at the board level has a significant negative effect on firm performance or share prices
• Constraining hypothesis • Dispersed ownership to a weaker role of employees • Shareholders prefer firms to focus on a single business or core competence. • Equity-oriented performance targets create new questions of performance criteria, time horizons, and disciplining poorly performing units. • Performance-based pay raises risks of contingent pay. • Empirical study-UK: Corporate practices oriented to shareholder- value do have a constraining influence on commitment-based human resource management policies and outcomes. • Core rationale: conflict of interests between labors and shareholders • No systematic evidence exists to suggest that strong employee voice at the board level has a significant negative effect on firm performance or share prices. Comparative and International Corporate Governance
Comparative and International Corporate Governance Facilitating hypothesis Labor influence in corporate governance does help to improve productivity and reduce labor turnover and preserve firm-specific human capital,although this may come at some expense of firm value during periods of restructuring. The"varieties of capitalism"approach argues that blockholding and employee voice are complementary and mutually reinforcing in ways that contribute to competitive advantages.=>long-term organizational capacities Employee with shareholders to promote greater accountability and decreases agency costs by monitoring,transparency and etc. ·Empirical study Dispersed ownership is combined with strong employee voice. High-performance work practices coexist under conditions of stock-market pressure
• Facilitating hypothesis • Labor influence in corporate governance does help to improve productivity and reduce labor turnover and preserve firm-specific human capital, although this may come at some expense of firm value during periods of restructuring. • The “varieties of capitalism” approach argues that blockholding and employee voice are complementary and mutually reinforcing in ways that contribute to competitive advantages.=>long-term organizational capacities • Employee with shareholders to promote greater accountability and decreases agency costs by monitoring, transparency and etc. • Empirical study • Dispersed ownership is combined with strong employee voice. • High-performance work practices coexist under conditions of stock-market pressure. Comparative and International Corporate Governance