Are employee share ownership programs really improving organisational performance?

This paper examines the findings on employee share ownership programs' (ESOP) influence on organisational performance among Australian firms. The ESOP anticipated benefits that lead to superior organizational performance measured by traditional key accounting ratios are primarily based on a research conducted in the USA. Since there is no evidence of a similar research conducted in Australia, a quantitative study explored links between employee share ownership participation and organizational performance among Australian firms. The findings are opposed to the common understanding among academics and business people today that ESOP significantly contribute to an improved organisational performance.