Employee Stock Ownership Plans and Corporate Restructuring: Myths and RealitiesNational Bureau of Economic Research, 1989 - Počet stran: 28 During the first six months of 1989 U.s. corporations acquired over $19 billion of their own stock to establish employer stock ownership plans (ESOPs). We evaluate the common claims that there exist unique tax and incentive contracting advantages to establishing ESOPs. Our analysis suggests that, particularly for large firms, where the greatest growth in ESOPs has occurred, the case is very weak for taxes being the primary motivation to establish an ESOP. The case is also weak for employee incentives being the driving force behind their establishment. We conclude that the main motivation for the growth of ESOPs is their anti-takeover characteristics. |
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$3 million after-tax Alberto Alesina assets before-tax rate benefit pension plans bonds Bureau of Economic capital gains cash flows cash outflows common stock contribution limits convertible preferred stock CORPORATE RESTRUCTURING corporate tax deductibility of dividends defined contribution plan defined-benefit pension dividend pass-through dividend yield Economic Research employee ownership EMPLOYEE STOCK OWNERSHIP employer securities entity-level tax equity ESOP borrowings ESOP contributions ESOP plan ESOP provides ESOP shares ESOP with Dividends establishing an ESOP firm fully-taxable immediate allocation loan implicit tax interest rate invest investors lender leveraged buyout leveraged ESOP loan leveraged-ESOP loan marginal tax rate Mark Bils Moreover Myron National Bureau NBER non-ESOP nontax costs Nouriel Roubini Number payments pension fund programs put option rate of return rate Rb risk risk-adjusted salary Scholes Mark shareholders stock bonus plan STOCK OWNERSHIP PLANS suspense account Tax Act tax advantage tax benefits tax deduction tax-exempt tax-favored tax-free taxable income Vittorio Grilli Wolfson