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This paper examines the relationship between the work environment measured by employee turnover and absenteeism and the employees' decision to invest in their company's shares. We conducted an econometric case study on a panel of about 15,000 employees over a period of 5 years collected from a French firm of the building industry. Our results show that absenteeism and staff turnover have a positive and significant influence on the decision to invest in employee share ownership. They underline that companies are likely to enhance employee share ownership plans in order to counter pre-existing employee withdrawal behaviors.

The influence of work environments on employees’ participation in the share purchase schemes of businesses