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Employee Stock Ownership Plans and the Publicly Held Corporation, a Study of Their Accounting, Financial and Economic Implications

The purpose of this study is twofold. First, the results of the study are used to isolate the impact of ESOP financing on actual firms as closely as possible. This is simply to point out many of the advantages and disadvantages of ESOP financing. Second, the results of the study are used to compare the relative costs of ESOP's with other deferred employee compensation. In general, the findings indicate that ESOP's have little to offer as a means of financing for publicly held corporations, However, they may have certain advantages when used as a part of a firm's total employee compensation package. The findings indicate that accounting rules for certain types of ESOP's tend to distort per share calculation in the early years of the plan. To correct this, ESOP shares should be considered outstanding only as they become unencumbered. The study found that a definite need exists for empirical data relating to ESOP's motivational effects. This is a key factor in determining how the ESOP will affect a firm's financial structure. Further study of this aspect would provide valuable information regarding the ESOP's effect on the firm's productivity.

Identiferoai:union.ndltd.org:unt.edu/info:ark/67531/metadc331060
Date08 1900
CreatorsHennessee, Patrick A.
ContributorsGiese, James W., Garnett, Hugh B., Christy, George A., Anderson, Gary Weldon
PublisherNorth Texas State University
Source SetsUniversity of North Texas
LanguageEnglish
Detected LanguageEnglish
TypeThesis or Dissertation
Formatix, 195 leaves : ill., Text
RightsPublic, Hennessee, Patrick A., Copyright, Copyright is held by the author, unless otherwise noted. All rights reserved.

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