Open AccessEmployee Stock Ownership Plans And Shareholder Wealth: An Examination Of The Market Perceptions Of The Non-Tax Effects
Author(s) -
Keith F. Sellers,
Joseph M. Hagan,
Philip H. Siegel
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v10i3.5923
Subject(s) - shareholder , incentive , business , stock market , accounting , stock (firearms) , monetary economics , finance , labour economics , economics , market economy , corporate governance , mechanical engineering , paleontology , horse , engineering , biology
As a means of achieving broad social and economic objectives, Congress has provided tax incentives designed to encourage Employee Stock Ownership Plans (ESOPs). The purpose of this study is to determine if some of the observed market reaction to ESOP adoption may be attributed to nontax benefits of ESOPs. This studys findings indicate that the securities market does perceive positive benefits from an ESOP other than from the tax benefits provided by Congress.