Ownership as a Form of Corporate Governance

By Brian L. Connelly, R. Hoskisson, Laszlo Tihanyi, S. Certo. 2010

452 citations recorded by the source corpus.

Firm ownership is an increasingly influential form of corporate governance. Although firms might be owned by different types of owners, most studies examine owner influence on a particular firm outcome in isolation. This study synthesizes research from multiple disciplines on different types of owners and offers a unifying framework of governance through ownership. Using this framework, we describe the motivations of various types of owners, the tactics owners use to affect firms in which they are invested, and the dominant firm outcomes these owners seek to influence. We note how heightened managerial awareness of heterogeneous owner interests increases owner influence on firm-level outcomes. We also provide a roadmap for future study and offer research questions about where scholars might turn their attention to better understand the role of owners in directing firm actions. Our study draws attention to emerging forms of ownership, such as hedge funds and sovereign wealth funds, and highlights the changing (and often competing) interests of shareholders and how this impacts theories of governance.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a94f81337aa14e114127633502c0e3e7f5abd457

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Citations in the corpus

Theories of the (state-owned) firm (2016, background): “2 For example, SOEs are not mentioned in two recent review papers explicitly dealing with Bownership issues^ (Connelly et al., 2010; Johnson et al., 2010).”
Female board directorship and firm performance: What really matters? (2018, background): “The conflicts of interests between minority and controlling shareholders might result in divergent perceptions of the role played by the board ( Connelly et al., 2010 ).”
In the Horns of the Dilemma: Socioemotional Wealth, Financial Wealth, and Acquisitions in Family Firms (2018, background): “…we extend the literature on the influence of ownership types on strategic actions to encompass acquisition research (e.g., Amihud & Lev, 1981; Connelly et al., 2010; David et al., 2010; Desender 1390 Journal of Management / April 2018 et al., 2013; Lane et al., 1998; Ramaswamy et al., 2002;…”
Institutional Investors and Institutional Environment: A Comparative Analysis and Review (2010, background): “For a review of the implications of the influence owners can have and relevant firm attributes, see the companion article in this issue, by Connelly et al. (2010).”