Towards a behavioral theory of corporate ownership and shareholder activism

Kate Sikavica, Amy Hillman

Research output: Contribution to conferencePaper

4 Scopus citations

Abstract

Shareholder activism is traditionally rooted in agency theory and based on the notion of financial incentives. We argue that economic approaches to corporate ownership and property rights provide only a partial explanation for shareholder activism and that in order to understand shareholder activism in its full breadth and depth a more cognitive and emotional approach to corporate ownership is necessary. We juxtapose legal and psychological ownership to develop propositions regarding the forms and tactics of activism shareholders are likely to adopt. We propose that shareholders holding varying levels of legal and psychological ownership develop disparate relationships with the organization, place emphasis on different objectives and, thus, use different forms of activism (exit, voice, loyalty) each associated with a different degree of publicity.

Original languageEnglish (US)
DOIs
StatePublished - 2008
Externally publishedYes
Event68th Annual Meeting of the Academy of Management, AOM 2008 - Anaheim, CA, United States
Duration: Aug 8 2008Aug 13 2008

Other

Other68th Annual Meeting of the Academy of Management, AOM 2008
CountryUnited States
CityAnaheim, CA
Period8/8/088/13/08

Keywords

  • Corporate ownership
  • Psychological ownership
  • Shareholder activism

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation

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  • Cite this

    Sikavica, K., & Hillman, A. (2008). Towards a behavioral theory of corporate ownership and shareholder activism. Paper presented at 68th Annual Meeting of the Academy of Management, AOM 2008, Anaheim, CA, United States. https://doi.org/10.5465/ambpp.2008.33718573