Profit sharing: Consequences for workers

Fang, Tony

doi:10.15185/izawol.225

Cited by 7 publications

(6 citation statements)

References 13 publications

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“…These effects are more pronounced under decentralized bargaining compared with coordinated bargaining. In line with Fang (2016) and Kraft and Ugarkovic (2005), we show that profit-sharing schemes typically increase firms' outputs and gross profits. They also increase wage flexibility as a profitsharing scheme allows a trade-off between a lower wage rate and a higher profit share.…”

Section: Related Literaturesupporting

confidence: 90%

Strategic profit‐sharing in a unionized differentiated goods oligopoly

Petrakis

Skartados

2021

Canadian J of Economics

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We study the incentives of firms and unions to bargain over a profit-sharing scheme in a unionized differentiated goods Cournot oligopoly. Under both firm-specific unions and a sector-wide union, universal profit-sharing arises in equilibrium as long as the bargaining power of the union(s) is not too high. Universal profit-sharing is more prevalent under coordinated than under decentralized bargaining. Under decentralized bargaining, a hybrid regime may arise in equilibrium in which ex ante symmetric firms use different remuneration schemes and become ex post asymmetric in the market. Our welfare analysis suggests that policy-makers should institutionalize decentralized bargaining and encourage profit-sharing schemes.Résumé. Participation stratégique aux bénéfices dans un oligopole syndicalisé avec biens différenciés. Dans un oligopole de Cournot avec biens différenciés, nous évaluons l'intérêt que peuvent avoir les entreprises et les syndicats à négocier un régime de participation aux bénéfices. Que l'on soit en présence de plusieurs syndicats spécifiques aux entreprises ou d'un seul syndicat spécifique à tout un secteur, le partage universel des bénéfices représente un équilibre tant que le pouvoir du ou des syndicats n'est pas trop important. Lorsque les négociations sont coordonnées, le partage universel des bénéfices est plus fréquent que lorsque les négociations sont décentralisées. Dans le cadre de négociations décentralisées, un régime hybride peut émerger et offrir un équilibre au sein duquel les entreprises symétriques ex-ante peuvent utiliser différents systèmes de rémunération et ainsi devenir asymétriques ex-post sur le marché. En matière de bien-être, notre analyse suggère que les décideurs politiques devraient institutionnaliser les négociations décentralisées et encourager les régimes de participation aux bénéfices.

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Section: Related Literaturesupporting

confidence: 90%

Strategic profit‐sharing in a unionized differentiated goods oligopoly

Petrakis

Skartados

2021

Canadian J of Economics

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“…Profit sharing is also a product of Islamic banks that have a pretty good role in the economy. Mentions that profit-loss sharing is a bonus based on profitability that is able to motivate someone to show strong performance (Fang, 2015). two types of contract is Tabarru contract and Tijara contract.…”

Section: Profit-loss Sharing Principlementioning

confidence: 99%

Influence Analysis Of Non Performing Financing By Profit-Loss Sharing Financing Contract To The Profitability Of Islamic Commercial Bank In Indonesia

Afkar

2018

Akrual J. Akunt.

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This study discusses to analyze the influence of non performing financing (NPF) from financing for the results seen from Mudaraba and Musharaka contracts to the level of profitability of Islamic banks in Indonesia. The results of this study indicate inconsistency with the theory that profitability is influenced by non performing financing (NPF). This study shows the opposite result of non-performing financing (NPF) as measured from Mudaraba contract and Musharaka contract no significant effect on profitability level of Islamic Banks in Indonesia. Simultaneous tests also show results that have no significant effect. The results of this study indicate that Non Performing Financing does not always have an effect on profitability because the value of financing problem is relatively small.

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“…Collective bargaining is a voluntary procedure applied to settle on terms and conditions of work and regulate relationships between managers, employees and their businesses, driving to the conclusion of a collective agreement (Pecheu, 2020). Collective bargaining may be an agreement between managers and a group of employees intended to regulate working pay, working conditions, benefits and other aspects of employees’ compensation and rights (Fang, 2016). Collective bargaining is vital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Profit-sharing can also be a valuable instrument helping businesses to retain their employees. Thus, sharing a percentage of profits among all employees may have a positive impact on their efficiency, motivation and their performance (Fang, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

How reward systems affect team performance in banks: evidence from the Middle East and North Africa (MENA) region

Serhan

Salloum

Abdo

2021

TPM

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Purpose The purpose of this study is to investigate the impact of reward systems on team performance and analyze how satisfaction with rewards can result in better working performance and cohesiveness in the job environment. Design/methodology/approach Data was collected from 32 single members of different teams working in 10 selected banks from the Middle East and North Africa region. Findings The analysis from empirical findings reveals that there is a positive link between reward systems and team performance. More particularly, profit sharing has positive effects on team performance and collective bargaining reward systems affect significantly team cohesiveness. These links create an opportunity for employers to use reward systems as a motivating factor to direct team behavior toward more employee retention. Originality/value This study contributes to the teamwork performance research stream by empirically studying how rewards improve team performance and cohesiveness in Eastern contexts. Studies in such contexts are relatively rare.

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Profit sharing: Consequences for workers

Cited by 7 publications

References 13 publications

Strategic profit‐sharing in a unionized differentiated goods oligopoly

Strategic profit‐sharing in a unionized differentiated goods oligopoly

Influence Analysis Of Non Performing Financing By Profit-Loss Sharing Financing Contract To The Profitability Of Islamic Commercial Bank In Indonesia

How reward systems affect team performance in banks: evidence from the Middle East and North Africa (MENA) region

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