What motivates companies to offer stock ownership plans to

Chapter 0, Problem 10.94

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What motivates companies to offer stock ownership plans to their employees? In a random sample of 87 companies having such plans, 54 said that the primary rationale was tax related (The Advantages and Disadvantages of ESOPs: A Long-Range Analysis, Journal of Small Business Management [1991]: 1521). Does this information provide strong support for concluding that more than half of all such firms feel this way?

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