Corporate Governance and Employee Power in the Boardroom: An Applied Game Theoretic Analysis

Balsmeier Benjamin, Berming Andreas, Dilger Alexander


Zusammenfassung
The debate on employee representation on corporate boards has received considerable attention from scholars and politicians around the world. We provide new insights to this ongoing discussion by applying power indices from game theory to examine the actual voting power of employees on boards and its effect on firm performance. Based on unique panel data on the largest listed companies in Germany, we find an inverse U-shaped relationship between labor power and Tobin's Q. Moderate employee participation in corporate board decision-making can enhance firm value.

Schlüsselwörter
Applied game theory; Co-determination; Corporate governance; Power index



Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2013

Fachzeitschrift
Journal of Economic Behavior & Organization

Band
91

Erste Seite
51

Letzte Seite
74

Sprache
Englisch

DOI

Gesamter Text