Labor participation in corporate policy-making decisions: West Germany's experience with codetermination

Loderer, Claudio; Benelli, Giuseppe; Lys, Thomas (1987). Labor participation in corporate policy-making decisions: West Germany's experience with codetermination. The journal of business, 60(4), pp. 553-575. The University of Chicago Press

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If workers are wealth maximizers, codetermination should lead to less risky investments, smaller dividends, reduced firm leverage, higher and more stable salaries, and more capital-intensive production processes. Unless codetermination also increases productivity by raising wokers' morale and satisfaction or reduces information asymmetries within the firm, shareholder wealth and firm value will decline. An analysis of West Germany's case, however, indicates that codetermination has little, if any, effect on corporate operations and performance.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Financial Management

UniBE Contributor:

Loderer, Claudio

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0021-9398

Publisher:

The University of Chicago Press

Language:

English

Submitter:

Karin Dolder

Date Deposited:

06 Feb 2014 09:20

Last Modified:

07 Dec 2014 09:41

BORIS DOI:

10.7892/boris.39598

URI:

https://boris.unibe.ch/id/eprint/39598

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