The corporate objective revisited: the shareholder perspective

2021 ◽  
Author(s):  
Maria Goranova ◽  
Lori Verstegen Ryan
Keyword(s):  
Corporate Objective ◽  
Shareholder Perspective

Does Performance Breed Slack? Ownership as a Contingency to the Performance Feedback and Slack Relationship

2021 ◽  
pp. 014920632110142
Author(s):  
Varkey Titus ◽  
Jonathan P. O’Brien ◽  
Jaya Dixit
Keyword(s):  
Performance Feedback ◽  
Stock Price ◽  
Theory Of The Firm ◽  
Organizational Outcomes ◽  
Organizational Slack ◽  
Length Relationship ◽  
Different Types ◽  
Stakeholder Perspective ◽  
Shareholder Perspective ◽  
The Relationship

Although organizational slack is a prominent construct in strategic management, it is often treated as an antecedent or enabler of other organizational outcomes, and thus our understanding of where slack comes from is underdeveloped. We draw on the behavioral theory of the firm to develop a better understanding about the antecedents of organizational slack. In so doing, we address a gap in the literature on the antecedents of slack by developing base models showing how and why performance feedback influences the three most common types of slack studied in the literature. Moreover, we contend that ownership is an important contingency that influences these relationships because different types of owners are motivated by different norms. Within a “communitarian” culture such as Japan, domestic owners generally have a multifaceted relationship with the firm and hence are motivated by norms of reciprocity and embeddedness, thereby allowing managers to adopt a stakeholder perspective. In contrast, foreign investors typically have only an arm’s-length relationship with the firm and are thus motivated by stock price, thereby putting “contractarian” pressures on managers to adopt a shareholder perspective. This domestic/foreign ownership distinction influences how resources are allocated and therefore the relationship between performance feedback and different types of slack in the firm. We further emphasize that these relationships will vary in accordance to where the slack resides: internal or external to the firm. We find general support for our hypotheses.

scholarly journals Solar Photovoltaic Architecture and Agronomic Management in Agrivoltaic System: A Review

2021 ◽  
Vol 13 (14) ◽  
pp. 7846
Author(s):  
Mohd Ashraf Zainol Abidin ◽  
Muhammad Nasiruddin Mahyuddin ◽  
Muhammad Ammirrul Atiqi Mohd Zainuri
Keyword(s):  
Renewable Energy ◽  
Energy Management ◽  
Irrigation System ◽  
Developed Countries ◽  
Light Limitation ◽  
Solar Pv ◽  
Solar Structure ◽  
Agronomic Management ◽  
Sustainable Renewable Energy ◽  
Shareholder Perspective

Agrivoltaic systems (AVS) offer a symbiotic strategy for co-location sustainable renewable energy and agricultural production. This is particularly important in densely populated developing and developed countries, where renewable energy development is becoming more important; however, profitable farmland must be preserved. As emphasized in the Food-Energy-Water (FEW) nexus, AVS advancements should not only focus on energy management, but also agronomic management (crop and water management). Thus, we critically review the important factors that influence the decision of energy management (solar PV architecture) and agronomic management in AV systems. The outcomes show that solar PV architecture and agronomic management advancements are reliant on (1) solar radiation qualities in term of light intensity and photosynthetically activate radiation (PAR), (2) AVS categories such as energy-centric, agricultural-centric, and agricultural-energy-centric, and (3) shareholder perspective (especially farmers). Next, several adjustments for crop selection and management are needed due to light limitation, microclimate condition beneath the solar structure, and solar structure constraints. More importantly, a systematic irrigation system is required to prevent damage to the solar panel structure. To summarize, AVS advancements should be carefully planned to ensure the goals of reducing reliance on non-renewable sources, mitigating global warming effects, and meeting the FEW initiatives.

scholarly journals Why Do Firms Invest in Consumer Advertising with Limited Sales Response? A Shareholder Perspective

2011 ◽  
Vol 75 (1) ◽  
pp. 109-124 ◽  
Author(s):  
Ernst C. Osinga ◽  
Peter S.H. Leeflang ◽  
Shuba Srinivasan ◽  
Jaap E. Wieringa
Keyword(s):  
Sales Response ◽  
Shareholder Perspective

Winner of the SLS Annual Conference Best Paper Prize 2011: Giving purpose to the corporate purpose debate: an Equitable Maximisation and Viability principle

Legal Studies ◽  
2012 ◽  
Vol 32 (1) ◽  
pp. 4-34 ◽  
Author(s):  
Daniel Attenborough
Keyword(s):  
High Probability ◽  
Shareholder Wealth ◽  
Academic Disciplines ◽  
Annual Conference ◽  
Legal Entity ◽  
Corporate Objective ◽  
Normative Principle ◽  
Legitimate Interests

Over the years, there has been an explosion in the mainstream scholarship of various academic disciplines on the issue of the appropriate corporate objective, which has been framed by a debate between the shareholder wealth maximisation and stakeholder-orientated theories. Behind the two paradigms is a complex set of controversies on which there exists wide disagreement. What is certain is that the prevailing theories have obvious normative and/or practical limitations and neither is to be extolled as an affirmative theory, for different reasons. The purpose of this paper is to cut through the consequent knot of partial and inaccurate dialectic in order to develop a positive normative principle of the corporate objective. This will be referred to as the Equitable Maximisation and Viability principle. The objective of the corporation as a separate legal entity should be to: (i) respect, protect, and fulfil the demonstrable, legitimate interests and expectations of the constituent groups that contribute to the corporation; and (ii) to facilitate the corporation's viability so that its future is guaranteed with sufficiently high probability. This theory is justifiable on the basis of the values of equality and efficiency.

Corporate real estate strategies: the Nigerian experience

2015 ◽  
Vol 17 (4) ◽  
pp. 244-259
Author(s):  
Timothy Tunde Oladokun ◽  
Bioye Tajudeen Aluko
Keyword(s):  
Real Estate ◽  
Business Performance ◽  
Stock Exchange ◽  
Primary Data ◽  
Content Type ◽  
The Real Estate ◽  
Corporate Objective ◽  
Corporate Real Estate ◽  
Public Organisations ◽  
Real Estate Management

Purpose – The paper aims to contribute to the empirically scarce literature on corporate real estate management (CREM) strategies by providing meaningful insights on the different strategies likely to contribute to business performance in a developing country like Nigeria. Design/methodology/approach – Primary data collected using questionnaire administered on property managers of the 105 business organisations in the list of registered companies with the Nigerian Stock Exchange were used for the study. The questionnaire elicited information on the real estate holding pattern and the adopted strategies for acquiring and managing real estate assets. The data collected were analysed using percentages, mean and proportion method. Findings – The study established that 41 per cent of the organisations were public organisations. Others were private companies (31 per cent), government departments (18 per cent) and multi-nationals (10 per cent). The result indicated that 31.8 per cent had no CREM strategy. Strategies used were: cost reduction (18.75 per cent), facilitate production (20.17 per cent), flexibility (15.5 per cent), promote human resource objectives (10.86 per cent), promote the marketing message (4.33 per cent), promote sales and selling delivery (18.67 per cent), facilitate managerial process and knowledge (7.5 per cent) and capture real estate value (6.5 per cent). The study concluded that CREM is a useful tool that the organisations can make effective use of to improve their performance. Research limitations/implications – Limiting the scope of the study to the perception of the respondents could reflect an element of bias and might pose a great challenge to the representativeness. Also, the use of closed question questionnaire may limit the validity of the results. Practical implications – The study has major implications on business performance in Nigeria. There is the need for corporations to reappraise their real estate strategy and realign it with their corporate objective. There is also the need for Nigerian Institution of Estate Surveyors and Valuers to train its members for contemporary business requirements. Originality/value – The paper is a useful guide to corporate real estate managers in developing countries towards using real estate strategies to minimize the overall cost of their companies.

How organisation theory supports corporate governance scholarship

2015 ◽  
Vol 15 (4) ◽  
pp. 530-545 ◽  
Author(s):  
Jon Aarum Andersen
Keyword(s):  
Corporate Governance ◽  
Content Type ◽  
Organisation Theory ◽  
Stakeholder Perspectives ◽  
Symbolic Management ◽  
Power And Control ◽  
Direction Control ◽  
Stakeholder Perspective ◽  
Shareholder Perspective ◽  
Management Power

Purpose – This paper aims to show how organisation theory can be used to understand the controversy between the shareholder and the stakeholder perspectives. Rationalistic and open system theories may enhance research on corporate governance by offering well-defined concepts and by specifying core relationships. Design/methodology/approach – This paper applies descriptions of the two perspectives in organisation theory as a “method” for illustrating how they are linked to and support the shareholder versus the stakeholder perspectives. Findings – The controversy stems from the fact that the shareholder and the stakeholder perspectives address different relationships. The shareholder perspective captures two relationships that accord with rationalistic organisation theory: shareholders are managing the managers and the organisation, and managers are managing the corporation on behalf of the owners. The stakeholder perspective focuses on three relationships that are not concordant with system theory: managers are managing the shareholders (i.e. the symbolic management of stockholders), managers are managing the corporation (i.e. general management theory) and managers are managing the stakeholders. Research limitations/implications – Organisation theory provides suggestions for more fruitful definitions of the often-used concepts of direction, control, administration and influence. These terms may be substituted with the well-defined concepts of management, power and control. Practical implications – Proponents of organisation theory find it theoretically difficult to deal with the topic of corporate governance, if they do at all. When they do, they do it only perfunctorily. Originality/value – Organisation theory may strengthen research on corporate governance if we insist on both theoretical clarifications of major relationships and on the use of more strictly defined concepts.

Fiat and Chrysler, negotiating for survival

2015 ◽  
Vol 31 (1) ◽  
pp. 27-29 ◽  
Author(s):  
Andrea Caputo
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Turning Point ◽  
Content Type ◽  
Pertinent Information ◽  
Shareholder Perspective ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds impartial comments and places the articles in context. Findings – This is a story on how a corporate negotiation can be the turning point for survival. This case study is unusual in the business arena, as it is based on the role of external parties for the success of a strategic negotiation between corporations. It shows how an agreement was fundamental from a management/operational perspective, but impossible from a shareholder perspective. Yet, only thanks to the intervention of external parties that a successful agreement lead to the survival of the corporation. Practical implications – This paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – This briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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