Comparative and International Corporate Governance Relationship between employee voice at board level and corporate performance Constraining hypothesis Facilitating hypothesis Constraining hypothesis Zero-sum or negative-sum relationship ·Agency theory Germany:Supervisory board-factional benches,diluting board's powers,collusion between management and employees Agency cost:unable to create a blockholding balance of power between stockholders and the employee block Market-driven forms of ownership and finance->Market- driven forms of employment Faster employment adjustment,shorter job tenures and stronger use of performance-based pay systemsComparative and International Corporate Governance • Relationship between employee voice at board level and corporate performance • Constraining hypothesis • Facilitating hypothesis • Constraining hypothesis • Zero-sum or negative-sum relationship • Agency theory • Germany: Supervisory board-factional benches, diluting board’s powers, collusion between management and employees • Agency cost: unable to create a blockholding balance of power between stockholders and the employee block • Market-driven forms of ownership and finance=>Market- driven forms of employment • Faster employment adjustment, shorter job tenures and stronger use of performance-based pay systems