Profit-sharing Plans Research Articles

Analysis Of Providing Compensation In Improving Employee Performance According To An Islamic Economic Perspective (Case Study Of Pt. Sarana Lampung Ventura)

This think about looks at the crossing point of Islamic financial standards and stipend hones in making strides representative execution, centering on PT. Sarana Lampung Ventura, an Indonesian wander capital company. Through subjective library inquire about, the consider analyzes how Islamic-based recompense frameworks adjust with modern human asset administration hones and their affect on representative efficiency, work fulfillment, and organizational commitment. The discoveries uncover that PT. Sarana Lampung Ventura’s recompense hones, counting reasonable compensation, convenient installments, and profit-sharing plans, for the most part adjust with Islamic financial standards. This arrangement contributes to expanded representative efficiency, upgraded work fulfillment, and lower turnover rates. In any case, challenges continue in adjusting advertise weights with strict adherence to Islamic standards and creating comprehensive measurements for representative commitments. The consider proposes a few suggestions to assist upgrade the company’s remuneration framework, counting executing a comprehensive execution administration framework that joins both monetary and non-financial measurements adjusted with Islamic values, growing representative benefits to reflect Islamic social obligation, and presenting skill-based pay components. This inquire about contributes to the developing body of writing on Islamic human asset administration, advertising experiences into the down to earth application of Islamic financial standards in present day trade settings. It highlights the potential for Islamic-based recompense hones to drive worker execution whereas keeping up moral and devout keenness. The consider concludes that whereas PT. Sarana Lampung Ventura has made noteworthy advance in adjusting its emolument hones with Islamic standards, there’s room for advance upgrade to reinforce its framework and possibly lead to indeed more noteworthy worker execution and organizational victory inside the system of Islamic financial matters.

Overcoming Barriers to Employee Ownership: Insights From Small and Medium-Sized Businesses

This research investigates the limited adoption of employee stock ownership plans (ESOPs) among small-to-medium sized businesses (SMBs) in the U.S. Through interviews with 30 SMB owners across various industries, we identify the key barriers to ESOP adoption as lack of time, money, and skills on the part of the owners. In doing so, the study suggests that a “shared ownership light” model, which involves sharing profits, information, and decision-making opportunities with employees, appears more feasible for SMBs than ESOPs. For SMBs that are interested in ESOP adoption, our research suggests that organizations providing employee ownership services could better assist SMBs by offering templatized models and best practices for profit-sharing plans, open-book management, and structured employee participation. The paper aims to broaden the discussion around shared ownership by considering a spectrum of options that have the potential to increase both value creation by and value-sharing among employees.

Recent Developments in Federal Income Taxation: The Year 2000

This current developments outline discusses, andprovides context to understand the significance of, the most important judicial decisions and administrative rulings and regulations promulgated by the Internal Revenue Service and Treasury Department during the year 2000.1 Most Treasury Regulations, however, are so complex that they cannot be discussed in detail; only the basic topic andfundamental principles are highlighted. Amendments to the Internal Revenue Code generally are not discussed except to the extent that they have either led to administrative rulings and regulations or have affected previously issued rulings and regulations otherwise covered by the outline. The outline focuses primarily on topics of broad general interest -income tax accounting rules, determination of gross income, allowable deductions, treatment ofcapital gains and losses, corporate and partnership taxation, exempt organizations, and procedure and penalties. It deals summarily with qualified pension and profit sharingp lans, but generally does not deal with internationalt axation or specialized industries, such as banking, insurance, and financial services.

Employee Cash Profit-Sharing and Earnings Management

This paper examines how a firm’s employment policy, particularly employee cash profit-sharing plans, affects its financial reporting. We find that firms with employee cash profit-sharing programs are more likely to engage in downward earnings management to reduce labor costs, especially with decreasing performance. This effect is more evident in firms with higher labor costs and human-capital reliant firms. Our findings are robust to a variety of model specifications and endogeneity problems.

The Effects of Profit-Sharing Plans, Client Importance, and Reinforcement Sensitivity on Audit Quality

SUMMARY Despite concerns that profit-sharing plans might have a detrimental effect on audit quality, there is little empirical evidence on this issue. We examine the effects of the type of profit-sharing plan, level of client importance, and auditor reinforcement sensitivity (joint sensitivity to rewards and punishments) on auditor reporting decisions. By relying on agency theory and reinforcement sensitivity theory, we posit that the joint effects of profit-sharing and client importance on auditors' decisions are contingent on reinforcement sensitivity. In an experiment with 450 audit partners and managers, we manipulate type of profit-sharing plan and client importance, and measure extroversion and neuroticism. We find the highest audit quality when profit-sharing is based on firm performance, client importance is low, and reinforcement sensitivity is high. Thus, instead of just modifying the type of profit-sharing plans, it is the mix of economic incentives and personality traits that affect audit quality.

Recent Developments in Federal Income Taxation: The Year 2019

This article summarizes and provides context to understand the most important developments in federal income taxation for the year 2019. The items discussed primarily consist of the following: (i) significant amendments to the Internal Revenue Code; (ii) important judicial decisions; and (iii) noteworthy administrative rulings and regulations promulgated by the Service and the Treasury Department. This article primarily focuses on subjects of broad general interest – tax accounting rules, determination of gross income, allowable deductions, treatment of capital gains and losses, corporate and partnership taxation, exempt organizations, and procedure and penalties. This article generally does not address items relating to federal estate and gift taxation, income taxation of trusts and estates, qualified pension and profit-sharing plans, international taxation, or specialized industries such as banking, insurance, and financial services.

Recent Developments in Federal Income Taxation: The Year 2018

This article summarizes and provides context to understand the most important developments in federal income taxation for the year 2018. The items discussed primarily consist of the following: (i) significant amendments to the Internal Revenue Code; (ii) important judicial decisions; and (iii) noteworthy administrative rulings and regulations promulgated by the Service and Treasury. The article focuses primarily on subjects of broad general interest – tax accounting rules, determination of gross income, allowable deductions, treatment of capital gains and losses, corporate and partnership taxation, exempt organizations, and procedure and penalties. This article generally does not address items relating to federal estate and gift taxation, income taxation of trusts and estates, qualified pension and profit-sharing plans, international taxation, or specialized industries such as banking, insurance, and financial services.

Changing employment relations under a fractured corporate elite

Abstract Shareholder power is often cited as contributing to the deterioration of employment relations. However, managerial power also shapes how shareholder pressures affect workers. In this article, we examine how managerial power contributed to the initial durability and eventual decline of white-collar benefits in the era of shareholder primacy. One traditional source of elite power is the network of overlapping board appointments which helped corporate leaders resist shareholder pressures that weaken employment relations and benefits. More recently, this network has begun to fracture and leaders are no longer able to draw on collective resources in resisting shareholders. We investigate how shifting bases of elite power affect white-collar benefits, focusing on employee stock ownership plans, work–life balance policies and profit-sharing plans. Using a panel of S&P 1500 firms from 1998 to 2011, we show that firms densely connected in the board interlock network were more likely to adopt white-collar benefits; but these benefits began to erode as the network fractured. We discuss the consequences of a disempowered corporate elite for employment stability.

The Effect of Individual and Pooled Profit Sharing Plans on Honesty in Managerial Reporting

ABSTRACTMany organizations offer profit sharing plans to motivate increased effort and goal congruence. However, an unintended consequence of such plans may be to reduce honesty in managerial reporting. We investigate two commonly observed profit sharing plans (individual and pooled) in a laboratory experiment where multiple agents with private cost information submit budget requests to an employer. Consistent with our prediction based on crowding theory, our findings suggest that honesty is reduced in the presence of an individual profit sharing plan. However, when a pooled profit sharing plan is used, the adverse effects on honesty are partially mitigated. Our results suggest that an unintended consequence of profit sharing (decreased honesty) can be mitigated through interdependency from pooled plans. The results have practical implications, given that organizations have flexibility in establishing both the size and scope of their profit sharing plans. Our study also contributes to our understanding of reporting behavior, particularly in multi‐agent settings.

The ten most common indicators in agreements involving profit sharing plans

Approving the Brazilian law for profit sharing plans (PSP) has brought a new perspective to the society when it comes to capital and labour relations. Concerning PSP, Law number 12.832 from June 2013 rules the relationship between business companies and workers, together with labour unions, providing to both parties the possibility of negotiating improvements on organisational processes for the companies and better pay for the employees. The main goal of this study is to present the results of a research developed with the ten most common indicators in 232 PSP agreements signed in Brazil between 2013 and 2014. The information used in this research was obtained in websites and at the headquarters of labour unions and companies from the issued region. The contracts were tabulated and analysed. From all information acquired, it was possible to extract 22 different performance indicators and, through the information acquired, it was concluded that the ten indicators pointed out here strongly represent the group studied, since they mean 84.99% of all indicators.

Employee relations and innovation: an empirical analysis using patent data

ABSTRACTThis paper investigates the relationship between employee relations (ER) as tracked in the environment, social, and governance (ESG) database provided by MSCI Inc., and innovation as measured by patents and patent citations. Some ER policies, such as broadly based profit-sharing plans, stock option plans, and stock ownership, create a direct link between a firm’s performance and employee compensation and might therefore be expected to encourage successful innovation. In addition, some other aspects of ER, including good pension plans, good union relations, and a variety of specific benefits (such as flex time) might improve innovation performance through their effect on employee morale or institutional loyalty, or simply by creating incentives to stay with the firm. We find that both of these categories of ER – financial incentives and non-pecuniary motivations – have a positive effect on innovation as measured by patenting and patent citations.

Základní přístupy k "profit-sharingu" a náměty na další využití

Tento článek se zabývá problematikou "profit-sharingu", tj. jednoho z typů skupinových odměn za výkonnost. Úvodní část článku vymezuje pojem "profit-sharing" a snaží se tento typ odměn umístit do širšího kontextu odměn za výkonnost. Neboť se ukazuje, že "profit-sharing" má mnoho forem, jsou identifikovány klíčové rysy, které jednotlivé formy odlišují. Pomocí rozsáhlé hodnotící literární rešerše jsou identifikovány hlavní dopady "profit-sharingu" a mechanismy jeho působení. Je poukázáno na skutečnost, že rozhodnutí o přijetí "profit-sharingu" a dopady jeho implementace závisí na určitých klíčových faktorech, které jsou v článku identifikovány a diskutovány. Poukázáno je rovněž na potenciální nedostatky "profit-sharingu" a možné postupy jejich eliminace, respektive zmírnění. V závěrečné části článku je podána rekapitulace poznatků a náměty na další výzkum.

"Stay in the Same Boat: A Study on Employment Relationship, Profit Sharing Plan and Firm Performanc"

Profit sharing plans are vital in the retention and motivation of employees. Due to its importance, the current research examines the status of profit sharing plan adoption by private firms in Chin...

Workers’ Participations in the Management of H.P. State Electricity Board

Participative management recognizes the desire of the workers for a say, an involvement and control over and understanding of the decisions which affects their lives. Workers’ participation in management which meet the aspirations of the workmen and have recently emerged are respectively the whitely type councils, profit-sharing plans and co-partnership, and worker-director schemes, sharing of information with, and consulting, workers to sharing the right of decision-making on issues of interest to the working class. Whatever may be the form of control there is inevitably some flow of power and authority from management to workers.

The Productivity Effects of Profit Sharing, Employee Ownership, Stock Option and Team Incentive Plans: Evidence from Korean Panel Data

We report the first results for Korean firms on the incidence, diffusion, scope and effects of diverse employee financial participation schemes, such as Profit Sharing Plans (PSPs), Employee Stock Ownership Plans (ESOPs), Stock Option Plans (SOPs) and Team Incentive Plans (TIPs). In do doing, we assemble important new panel data by merging data from a survey of all Korean firms listed on Korean Stock Exchange which enjoys an unusually high response rate of 60 percent with accounting data from their corporate proxy statements. Our estimated fixed effect models of production functions reveal consistently that the introduction of a PSP or a TIP will lead to a significant increase in productivity (about 10 percent) whereas no such evidence found for ESOPs or SOPs. We also find that the productivity payoff appears to be more long-lasting for PSPs than for TIPs. Finally, our fixed-effect estimates suggest that PSPs and TIPs tend to be substitutes rather than complements in their productivity effects.

Profit‐sharing plans and affective commitment: Does the context matter?

AbstractThis article analyzes the relationship between profit‐sharing plans (PSP) and affective commitment and how it is affected by the context of the PSP application. Overall, there is a positive relationship between profit sharing and commitment that is strongest in very small firms. The efficacy of a PSP in improving employees' affective commitment appears to be greatest in firms with low job‐related employee participation. Its application in workplaces where employees enjoy high levels of participation appears to have little impact and may even result in slight declines in affective commitment. © 2009 Wiley Periodicals, Inc.

ACCOUNTING FOR EMPLOYEE STOCK OPTIONS AND MANDATORY EXPENSING: AN ECONOMICS PERSPECTIVE

Whether employee stock options should be expensed at the grant date has been a highly controversial accounting issue. While the existing literature draws pro-expensing conclusions based on accounting principles and analogies, we shed new light to the issue by examine three functions of option granting in an analytical model. In principle, we show that while expensing is justified for financing options granted for expense postponement, it would misrepresent incentive options granted for long-term performance improvement. In practice, we show that options' fair value or the cost of granting them may not be the right amount to expense, and the inherent risk-sharing function of employee stock options poses a fundamental difficulty in estimating their fair value based on option pricing models. In conclusion, the findings of our examination do not support mandatory option expensing.

Economics of clinical nephrology practice

Economics of clinical nephrology practice

The nature, scope and effects of profit sharing in Japan: evidence from new survey data

In this paper we document in a variety of ways the nature, evolution and significance of Japanese profit-sharing plans (PSPs), using our new survey data. We also combine the survey data with corporate proxy statement data and produce firm-level micro-data for nearly 100 Japanese firms with PSPs containing detailed information on the characteristics of their PSPs. The resulting micro-data are then used to estimate the effects on enterprise performance of varying attributes of Japanese PSPs. Key findings include: (1) contrary to a popular notion of near-universal diffusion of PSPs among Japanese firms, about one in four publicly traded firms in Japan uses a PSP; (2) consistent with the free-rider problem of PSPs, PSPs are shown to be more popular among smaller firms, firms without unions, firms with employee participation at the grass roots; (3) over 70 per cent of firms with PSPs reported separate plans for officers and non-officers; (4) Japanese PSPs do not normally distinguish between union and non-union members; (5) Japanese PSPs are mostly company-wide; (6) nearly all Japanese PSPs are cash plans; (7) about a half of Japanese PSPs do not have a set formula for how the contribution should be tied to profits; (8) there is a statistically significant gain in firm performance from using an explicit formula; and (9) including certain targets in the formula appears to improve firm performance the most.

Trust and Efficiency

This paper uses the economics of altruism to show how the presence or absence of trust between employees of the firm affects economic efficiency. We develop a simple model in which trust is defined as reciprocal altruism between two employees and show that the presence of trust improves efficiency by mitigating principal-agent problems. Firms characterized by trust between employees are more profitable and have higher levels of employee satisfaction than firms from which trust is absent. We also compare the effects of trust to those of profit-sharing plans and argue that cultivating trust in the firm is easier to implement.