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Chief executive officer positive framing and employee ownership

Jiangyan Li¹; Wei Shi^2,3; Marie T. Dasborough^2,3

¹ Sun Yat‐Sen University · ² University of Miami · ³ College of Business and Technology

Employee ownership is an important governance tool used to encourage employee participation and enhance employee productivity, but we know little about what encourages employee ownership. This study investigates the influence of chief executive officer (CEO) positive framing in public speeches on employee ownership. We propose that CEO positive framing can increase employee ownership when employees internalize CEOs' positive beliefs about firms' accomplishments and prospects. Using a sample of 664 U.S. listed firms from 2002 to 2018, we find that CEO positive framing increases employee ownership. In addition, the stock purchasing behaviors of top executives, analyst recommendations, and positive media coverage strengthen the effectiveness of CEOs' positive framing on employee ownership. Findings from this study advance employee ownership research by highlighting the vital role of CEOs' public language use in promoting employee ownership.

DOI

10.1002/hrm.22064

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