City Research Online

Abstract

In this chapter, the authors examine one resilience signal – the launch of a new Employee Stock Ownership Program (ESOP). They propose that the decision to launch a new ESOP not only conveys to external stakeholders, especially capital markets, what top managers think about the prospects of the firm but also provides information about what the employees, who often have first-hand knowledge of the state of the firm, think about the future prospects of the firm and their willingness to invest their own capital in building a sustainable future for the business. This chapter contributes to our understanding of how managerial actions that enable employees to increase their ownership stake in the organization can be a resilience signal, and it draws upon organizational research in signaling theory, stakeholder theory with an emphasis on changes in ownership, and research on the psychology of ownership and employees’ actions based on their outlook on the firm.

Publication Type:	Book Section
Additional Information:	This is an Accepted Manuscript of a book chapter published by Routledge in Psychology of Sustainability and Sustainable Development in Organizations on 30 Aug 2023, available online: https://doi.org/10.4324/9781003212157
Subjects:	B Philosophy. Psychology. Religion > BF Psychology H Social Sciences > HD Industries. Land use. Labor
Departments:	Bayes Business School Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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