Resumen de Labour-owned and participatory capitalist firms: different approaches to their financial and operative challenges

Zuray Melgarejo Molina, Francisco Javier Arcelus Ulibarrena, Katrín Simón Elorz

• This paper analyzes the extent to which differences in operating performance, economic growth, efficiency and productivity between labour-owned (LO Fs) and participatory capitalist (PCFs) firms can be attributed to their distinct capital-ownership structures, which in turn reflects their different ways of managing capital and labour as well as interpreting primary business function theory. The study uses a variety of quantitative techniques, including panel data analysis, data envelopment analysis, stochastic frontiers and the like to conclude that many of the relationships posited by economic theory fail to correspond with the successful performance of LO Fs. There are no substantial differences in growth potential, operating performance or productive efficiency between the two types of firms. Another result of interest is that the traditional indicators used to measure firm performance in LO Fs and also used by financial service companies in business risk analysis are not completely appropriate and may be threatening firm survival.