Executives and shareholders: A shift in the relationship

Albert A. Cannella

Research output: Contribution to journalArticle

9 Scopus citations

Abstract

This article suggests that a shift has developed in the ongoing relationship between executives and shareholders with shareholders gaining more power over executives. The power shift has been driven by institutional investors and hostile takeovers and is visible in changing patterns of succession. More executives are being dismissed for poor performance and are being dismissed more quickly following the onset of poor performance. Two potential negative outcomes are a decreased willingness of executives to undertake risky strategies and a decreased ability of executives to build long‐term, trusting relationships with stakeholders, even when these actions would be beneficial to shareholders. © 1995 by John Wiley & Sons, Inc.

Original languageEnglish (US)
Pages (from-to)165-184
Number of pages20
JournalHuman Resource Management
Volume34
Issue number1
DOIs
StatePublished - 1995
Externally publishedYes

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Organizational Behavior and Human Resource Management
  • Strategy and Management
  • Applied Psychology

Fingerprint Dive into the research topics of 'Executives and shareholders: A shift in the relationship'. Together they form a unique fingerprint.

  • Cite this