Suchergebnisse

Interest in the resource-based view of the firm continues to grow in the field of business policy and strategy. Recently, most of this interest seems to have been focused on understanding the empirical implications of this theory and especially on how a firm's resources and capabilities can affect its performance. Evaluating the empirical implications of the resource based view is, of course, a worthwhile endeavor. We present an overview of contributions in this issue.

Conflicts of interest between a firm's outside stockholders and employees will, in an efficient capital market, be reflected in a firm's cost of equity. Employee stock ownership reduces these conflicts by making the wealth of both outside stock holders and employees depend, to some extent, on the market value of a firm's stock. These reduced conflicts will, in an efficient capital market, be reflected in a lower cost of equity capital. Empirical implications of this argument are tested using a sample of Japanese electronics firms.