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- Title
EMPLOYEE SHAREHOLDERS OR INSTITUTIONAL INVESTORS? WHEN CORPORATE MANAGERS REPLACE THEIR STOCKHOLDERS.
- Authors
Useem, Michael; Gager, Constance
- Abstract
During the past decade, the shares of publicly traded companies moved increasingly 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 discipline their managers can lead the latter to replace the former.
- Subjects
UNITED States; INSTITUTIONAL investors; INVESTORS; INVESTOR relations (Corporations); STOCKHOLDER wealth; PUBLIC companies; AMERICAN business enterprises; CORPORATE finance; STOCK companies; BIG business; INSTITUTIONAL investments; EMPLOYEE selection
- Publication
Journal of Management Studies (Wiley-Blackwell), 1996, Vol 33, Issue 5, p613
- ISSN
0022-2380
- Publication type
Article
- DOI
10.1111/j.1467-6486.1996.tb00811.x