Exclusive Representation of Employee Shareholders in the Board: Issues and Economic Consequences

  •  Tarek Ben Noamene    
  •  Slim Ahmed Hassairi    


This research proposes to study the consequences of “exclusive” representation of employee shareholders in the board of directors or trustees regarding the company’s performance. The literature is controversial on the efficiency of management by directors representing employee shareholders. However, the work does not distinguish between representing employee shareholders only (outcome from an association of employee shareholders or a FCPE (company investment fund) of those elected by all employee or derived form of a labour organization. Our empirical study based on a sample of companies in the SBF 250, highlights the negative influence of the presence of directors representing employee shareholders on the economic performance of the firm.

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