Labor participation in corporate policy-making decisions: West Germany's experience with codetermination
Year: 1987
Type: article
Abstract: 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.
DOI: 10.7892/boris.39598
Language: English
Topic: Labor Movements and Unions
Subfield: Public Administration
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2017964512