Abstract
Research background: The conducted empirical research on the influence of the degree of ownership concentration in the employee?owned companies on their sales revenues thematically fits into the issue of efficiency of the direct privatisation method, in particular giving a state?owned enterprise for use against payment.
 Purpose of the article: The main goal of this article is to verify the research hypothesis stating that in employee?owned companies an increase in the degree of ownership concentration leads to an increase in sales revenues.
 Methods: The empirical studies were carried out on a sample of 15 employee-owned companies from Mazowieckie Province, which concluded the agreement of giving a state?owned enterprise for use against payment from 2000 to 2004 and using the data from financial statements handed in by these entities to the National Court Register for a ten?year period after the privatisation year. The verification of research hypothesis was based on the estimation of a Cobb?Douglas production function by Ordinary Least Squares method for two variants, differing in the way of measuring the degree of ownership concentration in investigated employee?owned companies.
 Findings & Value added: The research hypothesis formulated in this paper was verified negatively as the increase in the degree of ownership concentration in employee?owned companies caused the decrease in their sales revenues. The conducted empirical research also suggests that sales revenues in examined employee?owned companies peak at some intermediate/optimal level of ownership concentration.
Highlights
The privatisation of state–owned enterprises in Poland is coming to the end, but still remains an important scientific and research problem for the simple reason that there is a strong need to systematically evaluate the efficiency of joint stock companies being the result of this process
Empirical studies on the influence of employee ownership on the efficiency of a company carried out so far show that the entities in which the share of employee ownership exceeded 5% of the share capital — in relation to those in which it did not exceed 5% — revealed relatively poor performance. Those companies usually had lower Tobin’s Q, invested less in long-term assets, took fewer risks, grew more slowly, created fewer new jobs as well as exhibited lower labour and total productivity factors. It seems that the increase in ownership concentration in the hands of outside or inside shareholders raising the effectiveness of corporate governance and the implementation of managerial equity ownership reducing the principalagent conflict may improve performance of this type of entities
The carried out empirical studies on the effects of the degree of ownership concentration on sales revenues of employee–owned companies showed that the increase in the degree of ownership concentration leads to the decline in sales revenues, which means that the formulated research hypothesis was verified negatively. =The obtained about the existence negative and statistically significant relation between the degree of ownership concentration and sales revenues are opposite to the findings of Fazlzadeh et al (2011, p. 255) as well as Sanchez–Ballesta and Garcia–Meca (2007, p. 890), according to which ownership concentration does not have any significant effect on the firm’s performance
Summary
The privatisation of state–owned enterprises in Poland is coming to the end, but still remains an important scientific and research problem for the simple reason that there is a strong need to systematically evaluate the efficiency of joint stock companies being the result of this process. 193) which create a possibility to establish a joint stock company, even with a full participation of employees of the privatised state–owned enterprise, but with dispersed ownership of the share capital. Empirical studies on the influence of employee ownership on the efficiency of a company carried out so far show that the entities in which the share of employee ownership exceeded 5% of the share capital — in relation to those in which it did not exceed 5% — revealed relatively poor performance Those companies usually had lower Tobin’s Q, invested less in long-term assets, took fewer risks, grew more slowly, created fewer new jobs as well as exhibited lower labour and total productivity factors It seems that the increase in ownership concentration in the hands of outside or inside shareholders raising the effectiveness of corporate governance (compare Fazlzadeh et al, 2011, pp. 255–256; Kapopoulos & Lazaretou, 2006, p. 18; Sanchez–Ballesta & Garcia–Meca, 2007, pp. 885–886) and the implementation of managerial equity ownership reducing the principalagent conflict (compare Daraghma & Alsinawi, 2010, p. 124; Jelinek & Stuerke, 2009, p. 173) may improve performance of this type of entities
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