Question

The following preliminary conclusions may be reported based on a research on the effects of ESOPs except:

a. Labor-management cooperation does not emerge automatically when publicly traded companies move into employee ownership.
b. Employee ownership leads to greater identification of the employees with the company.
c. The presence of an ESOP does not make a firm more productive, efficient, or profitable.
d. Employees receive less information about the company.
e. Generally, the role of the union does not change except when the union made an early and ongoing effort to become involved in the change process.

Answer 1

Research on ESOPs suggests that employees tend to receive more, not less, information about their company, contrary to one of the statements provided. Other statements about labor-management cooperation, firm productivity, and union roles have been supported in the literature.

Step-by-step explanation:

One conclusion that does not stem from research on the effects of Employee Stock Ownership Plans (ESOPs) is that employees receive less information about the company. ESOPs often facilitate greater employee engagement with company operations, meaning that informative transparency is typically enhanced, not diminished. The other statements regarding labor-management cooperation, employee identification with the company, firm productivity, and the role of unions are more plausible outcomes based on the literature on ESOPs and labor relations.