S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Hanken School of Economics Working Papers, Hanken School of Economics

No 492:
Determinants of Profit Sharing in the Finnish Sector

Laura Arrantz-Aperte () and Almas Heshmati ()

Abstract: This study investigates the role of factors that determine individual employee’s and firms participation in profit sharing schemes. Using a large panel data of Finnish employees for the period 1996-2000 we analyse individual and workplace characteristics that make firms employ profit sharing schemes and workers susceptible of receiving profit sharing bonuses. In particular two links between profit sharing schemes and workers performance have been analysed. First, in looking at profit sharing as an incentive device the results show a positive link between firm size and monitoring costs. Second, we find that younger individuals with higher mean salary and capacity to bear risk are more susceptible to profit sharing schemes. The industrial sector in which the individual is employed is also an important determinant factor. We find weak evidence of a relationship between performance of firms and employment of profit sharing schemes at the industrial sector level.

Keywords: individual; firm; profit sharing; panel data; (follow links to similar papers)

32 pages, November 27, 2003

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Downloadable files:

492-951-555-795-x.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Staffan Dellringer ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhb:hanken:0492 This page was generated on 2014-12-14 19:22:43