Employee Participation in Corporate Governance: What Impact on the Performance and Cash Distribution Policy in the SBF 120 (2000‑2014)?

International audienceThis article analyzes the impact of employee share ownership and representation in governance structures on the performance and the payout policy of French listed companies. This empirical work is based on data from a combination of three sources (IODS, Eikon and Thomson Reuters) for a sample of French listed companies listed over the period 2000‑2014. Our results show that employee participation in corporate governance has different impacts. Employee share ownership helps to increase corporate profitability but also to limit dividend payments and share buyback practices. At the same time, employee participation in the Board of Directors (or Supervisory Board) moderates dividend payments to shareholders. These results provide new insights regarding the renewal of corporate governance and the evolution of payout policy