Effects of financial participation plans on corporate financial and sustainable reporting quality
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2020-07-06
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en
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Abstract
This thesis examines the effects of different forms of financial participation plans on financial and sustainable reporting quality. For the multilevel analysis, a panel dataset with 9864 observations has been used by including 822 listed European companies during the period of 2006 – 2017. Financial participation plans were distinguished in (broad-based) share plans, profit-sharing plans, and option plans. The effects of (broad-based) share plans and option plans were tested by using lags, while the effects of profit-sharing plans were expected to have immediate effects. Option plans were found to have positive significant effects on financial reporting quality. Additional analyses have found that these positive effects start immediately and last for four years. Furthermore, broad-based share plans have positive effects on sustainable reporting quality, which support the findings of previous studies that broad-based share plans have more positive effects. These positive effects on sustainable reporting quality are also found at the combination of share plans and profit-sharing plans, which support previous studies that this synergy has positive influence on the attitude of employees. Finally, employees' stake in ownership have positive effects on financial reporting quality. Therefore, these results imply that different financial participation plans are able to affect corporate reporting quality.
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Faculteit der Managementwetenschappen