MARCHING TO THE BEAT OF DIFFERENT DRUMMERS: THE INFLUENCE OF INSTITUTIONAL OWNERS ON COMPETITIVE ACTIONS

• 成果类型: Article
• 署名作者: Connelly, Brian L.; Tihanyi, Laszlo; Certo, S. Trevis; Hitt, Michael A.
• 署名单位: Auburn University System; Auburn University; Texas A&M University System; Texas A&M University College Station; Mays Business School; Arizona State University; Arizona State University-Tempe
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/AMJ.2010.52814589
• 发表日期: 2010
• 页码: 723-742
• 关键词: research-and-development; corporate governance; financial performance; short-termism; investors; management; firm; Rivalry; MARKET; earnings

摘要

This research extends agency theory by exploring the influence of varied, competing, principal interests on executive actions. Findings reveal that ownership of a firm by dedicated institutional investors, who hold concentrated portfolios over time, is positively associated with firm use of strategic competitive actions. Ownership by transient institutional investors, who hold broad portfolios and make frequent trades based on current earnings, is negatively associated with strategic competitive actions and positively associated with tactical ones. Appreciable ownership of the same firm by these two classes of investors influences both strategic and tactical competitive actions. These results have broad implications for executives, investors, and policy makers.