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

Balsmeier Benjamin, Berming Andreas, Dilger Alexander, Geyer Hannah


Zusammenfassung
The discussion about employee representation on supervisory boards has received much attention from scholars and politicians around the world. We provide new insights to this ongoing debate by employing power indices from game theory to examine the ‘real' power of employees on boards and its effect on firm performance. Based on unique panel data of the largest listed companies in Germany, we find an inversely U-shaped relationship between labour power and Tobin's Q with a value-maximising labour power of approximately 43 %. Our results are robust to different game theoretical calculations of labour power, as well as various econometric models.



Publikationstyp
Sonstige wissenschaftliche Veröffentlichung

Publikationsstatus
Veröffentlicht

Jahr
2011

Band
9/2011

Reihe
Diskussionspapier des Instituts für Organisationsökonomik

Verlag
Institut für Organisationsökonomik

Ort
Münster

Sprache
Englisch

ISSN
2191-2475

Gesamter Text