Employee Shareholding and the Opportunity Cost of Lending Funds: An Empirical Study in the Context of French Companies in the SBF 250

Abstract

Considering trust as a universal mechanism of governance inherent in any cooperation. Our study proposes to invest a new facet of employee ownership. Indeed, the participation of employees in the capital of their businesses, by trust it induces, is likely to limit the uncertainty and distrust of resource providers. To test this relationship, we conducted two empirical studies. The first is to study the structure ratios and liquidity of companies in the SBF 250, in a longitudinal sample of 2001 to 2009. The second study provides a comparison of a matched cross sectional sample, on the score of Altman 19 pairs businesses.