The Symbolic Management Of Stockholders: Corporate Governance Reforms And Shareholder Reactions

dc.contributor.utaustinauthorWestphal, James D.en
dc.creatorWestphal, J. D.en
dc.creatorZajac, E. J.en
dc.date.accessioned2015-04-16T13:57:39Zen
dc.date.available2015-04-16T13:57:39Zen
dc.date.issued1998-03en
dc.description.abstractThis paper examines the consequences of symbolic action in corporate governance. Specifically, we examine (1) whether the stock market reacts favorably to specific governance mechanisms that convey the alignment of CEO and shareholder interests, such as the adoption of long-term incentive plans (LTIPs), even if such plans are not actually implemented, (2) whether providing agency-related explanations for LTIPs affects the stock market response, and (3) whether the symbolic adoption of LTIPs deters other governance reforms that would reduce CEOs' control over their boards. Analysis of data from over 400 corporations over a ten-year period suggests that symbolic corporate actions can engender significant positive stockholder reactions and deter other, more substantive governance reforms, thus perpetuating power imbalances in organizations. We discuss implications for institutional and agency-based perspectives on organizations.en
dc.description.departmentBusiness Administrationen
dc.identifier.citationJames D. Westphal and Edward J. Zajac. Administrative Science Quarterly Vol. 43, No. 1 (Mar., 1998), pp. 127-153. DOI: 10.2307/2393593en
dc.identifier.doi10.2307/2393593en
dc.identifier.issn0001-8392en
dc.identifier.urihttp://hdl.handle.net/2152/29319en
dc.language.isoEnglishen
dc.relation.ispartofserialAdministrative Science Quarterlyen_US
dc.rightsAdministrative deposit of works to UT Digital Repository: This works author(s) is or was a University faculty member, student or staff member; this article is already available through open access or the publisher allows a PDF version of the article to be freely posted online. The library makes the deposit as a matter of fair use (for scholarly, educational, and research purposes), and to preserve the work and further secure public access to the works of the University.en
dc.subjectinterfirm tender offersen
dc.subjectboard compositionen
dc.subjectorganizational legitimacyen
dc.subjectmanagerial incentivesen
dc.subjectstock returnsen
dc.subjectceo payen
dc.subjectperformanceen
dc.subjectownershipen
dc.subjectcompensationen
dc.subjectmarketen
dc.subjectbusinessen
dc.subjectmanagementen
dc.titleThe Symbolic Management Of Stockholders: Corporate Governance Reforms And Shareholder Reactionsen
dc.typeArticleen

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