Managerial Performance Differences between Labor-Owned and Participatory Capitalist Firms

Abstract

This paper tests for differences in the managerial performance of micro and small firms, classified by capital‐ownership configuration, be they labor‐owned or participatory capitalist firms. Measures of managerial performance comprise indices of economic performance, profitability, financial structure, worker remuneration, and solvency. Explanators of these differences include the age of the firm, its economic sector of operations, its capital‐ownership configuration and an ordinal measure of strategic risk. The evidence rejects Gibrat's law of proportional effects, in favor of the life cycle hypothesis. It also leads to inconclusive short‐term effects and to a nondifferential role of the type of key capital‐ownership configuration in a firm's long‐term prospects.

Desempeño empresarial y ciclo económico en la industria de alimentos y bebidas colombiana: una aproximación no paramétrica

“…En la tabla 3, se recogen las definiciones y medidas de los indicadores utilizados. La cantidad de ratios financieros que tienen origen en la información contable es amplia, pero dentro de los más usados para evaluar el desempeño financiero se encuentran los de rentabilidad, estructura financiera y solvencia (Arcelus et al, 2014).…”

“…La literatura existente sobre las diferencias en el desempeño empresarial, han identificado que existe correlación entre algunas variables que caracterizan a las empresas, como el tamaño de la empresa, ubicación geográfica o la edad, con sus niveles de rentabilidad, posibilidades de financiación ajena y potencial de supervivencia (Arcelus, Melgarejo y Simón, 2014;Beck y Demirguc, 2006;Bonnaccorsi y Giannangeli, 2010, entre otros). Esto permite inferir que las empresas de mayor tamaño, ubicadas en regiones dinámicas y más antiguas, pueden lograr un mejor desempeño empresarial.…”

Assessing employee-owned firms: an examination of the Spanish economic model

“…The main variable representing employee share ownership takes the value 0 if it is non-EOF and 1 if it is EOF. Also included are control variables that have been shown to be significant in previous studies (Melgarejo, Arcelus & Simon, 2007b;Melgarejo, Arcelus & Simon, 2014;Espinosa Mendez, 2009;Wang, 2009), size, age and indebtedness measured in logarithm 3 . Furthermore, we included a dummy variable for sector of economic activity and also for each year a dichotomous variable which reflects the accumulated time effect for all the companies compared with the start of the period.…”

Employment protection legislation and SME performance

“…We therefore also use a value added ratio ( VA i,t ), which is not sensitive to this problem, as a measure of performance. This variable is calculated by subtracting the costs of materials and outside services from revenue to obtain the so-called value added of the firm; next value added is divided by total assets of the previous year (Arcelus et al, 2014).…”