This research assesses the “positive or negative” effects of employee share ownership on good governance in Morocco. It focuses on a lagging but constantly evolving phenomenon in Morocco due, on the one hand, to the lack of awareness of its positive effects on both individual and organizational performance and, on the other hand, on the significant delay in Moroccan legislation regarding this subject. The authors propose an index to measure good governance that they use in order to test research hypotheses. The quantitative study examines all companies listed on the Casablanca Stock Exchange over an observation period from 2015 to 2020. Through this research, the authors demonstrate the favorable effects of employee share ownership on good governance.
TopEmployee Shareholder: His Place In The Governance Of The Company
Attempts to define the concept of corporate governance date back to the twentieth century and refer to various mechanisms aimed at reducing transaction costs generated by the market.
Porta et al. (2000), define governance as: “the set of mechanisms that allow investors to protect themselves against the risk of expropriation on the part of managers and directors who are linked to managers”. This idea is in line with the vision of Shleifer and Vishny (1997), who consider that “non-shareholder managers” are opportunistic and the system of governance must therefore protect investors from the risk of theft.
For Dionne-Proulx J. and Larochelle G. (2010), the concept of corporate governance covers the regulatory framework, the practices and mechanisms adopted by an organization and which govern the relations between managers and shareholders, or more broadly. between leaders and stakeholders.
The qualifier “good” was then added to the notion of governance in 1997, referring to a normative character of corporate governance. Indeed, this adjective refers to a need for the establishment of a regulatory framework and codes of good governance practices by the various national and international initiatives.
This is how international institutions have also presented attempts to define corporate governance. The organization for economic cooperation and development (OECD, 2015) proposes for its part a more extensive definition of corporate governance: “This concerns all the relationships between the management of a company, its board of directors. administration, its shareholders and various other stakeholders. It also determines the structure by which the objectives of a company are defined, as well as the means to achieve them and to monitor the results obtained. “
In the Moroccan context, the Moroccan Code of Good Practices in Corporate Governance of 2008 similarly defines corporate governance as being: “all relations between the directors of the company and its governance body, with the shareholders on the one hand and the other stakeholders on the other, with the objective of creating value for the company ”.
The purpose of this first part is, first of all, to define employee shareholding and to present the Moroccan experience in the matter. Secondly, we will situate employee share ownership in financial theories, in this case the theory of property rights and agency theory.