Effect of Employee Stock Ownership Plans (ESOPs) on the performance of Small business in Karachi

Riaz, Fayyaz and Abdul Razzaq, Fiza and Waqar, Ahsan (2017): Effect of Employee Stock Ownership Plans (ESOPs) on the performance of Small business in Karachi. Published in: International Journal of Applied Business and Management Studies , Vol. 2, No. 2 (1 December 2017): pp. 1-16.

Abstract

This paper examines the impact of employee stock ownership plans on the overall performance of the organizations. From the five decades literature, the conceptual underpinning formed includes variables of interest namely; employees' motivation, job commitment, employees' turnover, and productivity/profitability of the firms. The paper follows positivist philosophy with deductive approach to gain numerical significance. Total 280 respondents targeted using combination of probability (random) sampling and non-probability (convenience and snowball) sampling techniques. The statistical tests, which are used to test the hypotheses, are regression and correlation. Results showed that they exists statistically significant correlation between ESOPs and overall performance of the organization. Interestingly, the nature of relationship is positive but the strength is moderate to weaker. Employees' turnover has moderate positive significant correlation (r=. 541, p < a, 0.000 < 0.005) while all others have weak positive weak significant correlation with ESOPs. Based on findings, the managerial implications are discussed at the end of the paper to enhance organizational performances.

• Item Type: MPRA Paper
• Language: English
• Keywords: Employees Stock Ownership plans, commitment, employee turnover, profitability, motivation
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M0 - General > M00 - General; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M59 - Other

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