The impacts of the manager-to-worker ratio and institutional investors on the employment of production workers: 1985-1995

Abstract

The purpose of this research is to determine if rographics. certain structural aspects of corporations in the computer industry impact the future employment of production workers. These structural aspects deal with the stature of control of ownership by institutional investors and the manager-to-worker ratio. By focussing on One industry, the computer industry, this research provides a large sample that eliminates industrial variation. Furthermore this research provides in-depth information on one of the most dynamic industries in the U.S., the computer industry. The sample consists of data on 152 computer firms from 1985 to 1995. First simple regression analyses are run for background information on the differences between the companies that survived and those that did not. Then a time-series cross-sectional analysis is conducted on the survivors using the Parks method. Parks models are used to analyze the impacts of institutional investors and management ratio on the employment of production workers. It is found that there is a significant negative relationship between institutional ownership and employment of production workers, It is also found that there is a significant negative relationship between management ratio and employment of production workers.