Codetermination and Enterprise Performance: Empirical Evidence from West Germany

Uses panel data set of 63 firms covering years between 1970 - 1985, concluding that parity-codetermination (1/2 board representation) is associated with lower productivity but higher profitability.

1990

insights

Following Germany's 1976 strengthening of codetermination laws to 1/2 board representation for 2,000+ employee firms, capital-labor ratios declined (favoring capital formation), productivity declined, and profitability increased.

authors

Anoop Rai Michael A. Gurdon

reports

Codetermination

tags

Profitability Productivity Growth