Does Employee Stock Ownership Program contribute towards Profitability N. Marufa & M. Sari
Management Postgraduate Program Indonesia University of Education, Bandung, Indonesia
Abstract
This study was intended to determine the effect of the Employee Stock Ownership Program on the profitability. This type of research was descriptive and verification with 54 observational data from 9 companies listed Indonesian Stock Exchange in the 2012-2017 period. The statistical analysis used in this study was panel data regression analysis. Based on the results, ESOP can increase profitability. The objectives of holding an ESOP include creating harmony between the interests and missions of potential employees and the interests and missions of shareholders, so there is no conflict of interests. ESOP will Increase employee motivation and commitment to the company because they are also the owner of the company, so that it is ex-pected to increase company productivity and performance. Therefore, ESOP needs to be an important concern for companies to become a program that can be implemented as an alternative to increasing profitability.
