THE DISTINCT EFFECTS OF WEALTH- AND CSR-ORIENTED SHAREHOLDER UNREST ON CEO CAREER OUTCOMES: A NEW LENS ON SETTLING UP AND EXECUTIVE JOB DEMANDS

• 成果类型: Article
• 署名作者: Lee, Michelle K.; Gupta, Abhinav; Hambrick, Donald C.
• 署名单位: Queens University - Canada; University of Washington; University of Washington Seattle; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/amj.2019.1346
• 发表日期: 2022
• 页码: 186-217
• 关键词: corporate social-responsibility; institutional investors; instrumental variables; MOVEMENT PERSPECTIVE; longitudinal data; Agency problems; Activism; firm; performance; governance

摘要

Conceptualizing shareholder unrest as the aggregate scale and gravity of shareholder dissatisfaction with company practices, we examine the effects of two distinct types of shareholder unrest-wealth-oriented and corporate social responsibility (CSR)-oriented unrest-on CEOs' career outcomes. Drawing on the concept of settling up, we hypothesize that CEOs are negatively sanctioned for both types of unrest in terms of reduced pay and increased likelihood of dismissal. Drawing on executive job demands theory, we argue that incumbent CEOs feel burdened by both types of unrest, leading them to voluntarily depart, and that new CEOs of unrest-laden firms receive larger pay packages as compensation for dealing with these inherited job demands. Overarching all these expectations, we argue that the effects of CSR-oriented unrest will be greater than the effects of wealth-oriented unrest, as CSR-oriented unrest occurs in a domainwhere alternative performance indicators are few and noisy, causing CSR-oriented unrest to be seemingly more meaningful. Testing our ideas on a longitudinal sample of U.S. corporations, we find considerable but not total support for our hypotheses, which we then interpret and discuss.