Ace Automotive

No 163

September – October 2011

Journals

Roberto García Castro – Miguel A.

Canela – Miguel A. Ariño

Page

1

Journals

2

Books

3

Contributions

to books

3

Working Papers

4

Studies and

Monographs

4

Other publications

5

Conferences

and seminars

7

Awards

7

“Over the long run? The impact of

stakeholder management on short-run

and long-run shareholder value creation”,

Business & Society, Vol. 50, No 3,

September 2011, pages 485-512.

Abstract: The stakeholder view of the firm

has been justified under instrumental and

normative bases. Whereas the instrumental

basis argues that “enlightened stakeholder

management” is a necessary precondition to

seek shareholders’ value maximization, the

normative basis relies on the observance of

ethical norms by managers and the notion

that stakeholders should be treated as “ends.”

Some scholars argue that the two views

actually converge. However, this article

provides empirical evidence of the negative

effects of stakeholder management on

shareholders’ value in the short run and the

positive effects over the long run, using a

longitudinal database of 658 U.S. firms. Given

the difficulties of anticipating the instrumental

long-term financial effects of short-run

decisions affecting the different stakeholders,

the authors’ findings support the view of the

normative basis for stakeholder theory based

on ethics, norms, and heuristic criteria as a

way to solve conflicts among the claims of

different stakeholders.

actions pertaining to corporate governance.

The managerial power view of governance

suggests that executive pay, the existing

process of proxy access, and various

governance provisions [e.g., staggered

boards and Chief Executive Officer (CEO)chairman duality] are associated with

managerial rent extraction. This perspective

predicts that broad government actions that

reduce executive pay, increase proxy access,

and ban such governance provisions

are value-enhancing. In contrast, another

view of governance suggests that...