Employee shareholders or institutional investors? When corporate managers replace their stockholders

Michael Useem, Constance Gager

Research output: Contribution to journalArticleResearchpeer-review

10 Citations (Scopus)

Abstract

During the past decade, the shares of publicly traded companies moved increas-ingly into the hands of institutional investors. As large investors pressed companies to restructure, companies were observed in turn to restructure their shareholder base. Drawing on a 1989 survey of 761 US publicly traded companies, firms facing a hostile takeover environment or with large institutional holdings are found to seek greater employee stockholding. Large firms and those that had adopted takeover defences are more likely when threatened with takeovers or short-term pressures to seek more employee and less institutional stockholding. Though managers are employed by owners, investor efforts to disci-pline their managers can lead the latter to replace the former.

Original languageEnglish
Pages (from-to)612-631
Number of pages20
JournalJournal of Management Studies
Volume33
Issue number5
StatePublished - 1 Dec 1996

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Shareholders
Managers
Personnel
Industry
Employees
Investors
Institutional investors
Stockholders
Owners
Takeover defenses
Hostile takeovers
Large firms

Cite this

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Employee shareholders or institutional investors? When corporate managers replace their stockholders. / Useem, Michael; Gager, Constance.

In: Journal of Management Studies, Vol. 33, No. 5, 01.12.1996, p. 612-631.

Research output: Contribution to journalArticleResearchpeer-review

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