Stakeholder activism, managerial entrenchment and the congruence of interests between shareholders and stakeholders
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- dc.contributor.author Cespa, Giovannica
- dc.contributor.author Cestone, Giacintaca
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2017-07-26T10:50:27Z
- dc.date.available 2017-07-26T10:50:27Z
- dc.date.issued 2002-07-01
- dc.date.modified 2017-07-23T02:07:02Z
- dc.description.abstract We argue that when stakeholder protection is left to the voluntary initiative of managers, concessions to social activists and pressure groups can turn into a self-entrenchment strategy for incumbent CEOs. Stakeholders other than shareholders thus benefit from corporate governance rules putting managers under a tough replacement threat. We show that a minimal amount of formal stakeholder protection, or the introduction of explicit covenants protecting stakeholder rights in the firm charter, may deprive CEOs of the alliance with powerful social activists, thus increasing managerial turnover and shareholder value. These results rationalize a recent trend whereby well-known social activists like Friends of the Earth and active shareholders like CalPERS are showing a growing support for each other s agendas.
- dc.format.mimetype application/pdfca
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=634
- dc.identifier.uri http://hdl.handle.net/10230/1156
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 634
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword corporate governance
- dc.subject.keyword managerial entrenchment
- dc.subject.keyword social activists
- dc.subject.keyword small shareholders
- dc.subject.keyword stakeholder society
- dc.subject.keyword Finance and Accounting
- dc.title Stakeholder activism, managerial entrenchment and the congruence of interests between shareholders and stakeholdersca
- dc.type info:eu-repo/semantics/workingPaper