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Concentrated ownership, socioemotional wealth, and the 'third possibility' : bringing society back in
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Heracleous, Loizos Th. and Lan, Luh Luh (2022) Concentrated ownership, socioemotional wealth, and the 'third possibility' : bringing society back in. In: Meyer, R. E. and Leixnering, S. and Veldman, J., (eds.) The Corporation : Rethinking the Iconic Form of Business Organization. Research in the Sociology of Organizations , 78 . Bingley: Emerald Group Publishing Ltd., pp. 13-30. ISBN 9781800433779
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Official URL: https://doi.org/10.1108/S0733-558X20220000078001
Abstract
Concentrated ownership implies greater alignment between ownership and control, mitigating the agency problem. However, it may also engender governance challenges such as funds appropriation through related party transactions and the oppression of minority shareholders, especially in the context of weak legal systems. We draw from legal theory (the tradeoff controlling shareholder model and private benefits of control) and from organization theory (socioemotional wealth), to suggest that concentrated ownership can be beneficial in both robust and weak legal systems for different reasons. We advance theory on the effects of controlling shareholders and suggest that the longer-term outlook associated with engaged concentrated ownership can aid the shift of the corporation toward Berle and Means' (1932, p. 355) “third possibility” of corporations serving the interests of not just the stockholders or management but also of society.
| Item Type: | Book Item | ||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HG Finance H Social Sciences > HM Sociology |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||
| Library of Congress Subject Headings (LCSH): | Corporations , Organizational sociology , Corporate governance , Industrial concentration, Stock ownership, Stockholders , Business enterprises , Social responsibility of business | ||||||
| Series Name: | Research in the Sociology of Organizations | ||||||
| Journal or Publication Title: | The Corporation: Rethinking the Iconic Form of Business Organization | ||||||
| Publisher: | Emerald Group Publishing Ltd. | ||||||
| Place of Publication: | Bingley | ||||||
| ISBN: | 9781800433779 | ||||||
| ISSN: | 0733-558X | ||||||
| Book Title: | The Corporation : Rethinking the Iconic Form of Business Organization | ||||||
| Editor: | Meyer, R. E. and Leixnering, S. and Veldman, J. | ||||||
| Official Date: | 27 January 2022 | ||||||
| Dates: |
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| Volume: | 78 | ||||||
| Page Range: | pp. 13-30 | ||||||
| DOI: | 10.1108/S0733-558X20220000078001 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
| Copyright Holders: | Copyright © 2022 Emerald Publishing Limited | ||||||
| Description: | Book series |
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| Date of first compliant deposit: | 26 October 2021 | ||||||
| Date of first compliant Open Access: | 19 January 2022 | ||||||
| Related URLs: |
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