The determinants of employee stock ownership plans (ESOPs): Evidence from European banks
Phan Huy Hieu Tran  1@  
1 : Université de Limoges  (UNILIM)  -  Website
Laboratoire d'analyse et de prospectives économiques
33 rue François Mitterrand BP23204 87032 Limoges -  France

We investigate the determinants of employee stock ownership plans (ESOPs) by analyzing the effectiveness of supportive measures (legal measure, fiscal measure and political measure) implemented by the government. Our studying also explores how the effectiveness of supportive measures is shaped by institutional environment, opacity and ownership concentration. Our findings show that the government supportive measure and each of its components impact positively and significantly (at 1% confident level) ESOPs adoption. We find that even supervisory power and individualism have no direct impacts on the decision of a bank to adopt an ESOP, they help to increase the effectiveness of supportive measures. In contrast, the direct impact of shareholders protection on ESOPs adoption is negative and significant but it has no significant influence on the effectiveness of supportive measures. Our results also prove that opacity has neither a direct nor an indirect impact on the decision of a bank to adopt an ESOP. Ownership concentration has a negative and significant impact of ESOPs adoption but it has no significant impact on the effectiveness of supportive measures.


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