AbstractThis study aimed to analyze the impact of employee ownership on the organizational
performance of state-owned firms with the mediation of employee loyalty, motivation and
satisfaction, and psychological ownership as a moderator in Pakistan. Agency theory is used as a
theoretical underpinning to operationalize the research framework. This study employed
quantitative research design. The data was collected through primary and secondary data
collection tools. For primary data, a survey was conducted on a sample of 283 employees of the
state-owned firms under the scheme of employee ownership. The secondary data was collected for
financial performance, productivity, and financial cost. The findings showed a significant,
positive impact of employee ownership on net profit margin (β=1.3198), return on assets
(β=1.167), and productivity (β=0.0087), while the negative impact on financial cost (β.....