Informal institutions, shareholder coalitions, and principal-principal conflicts

Asia Pacific Journal of Management

Volumn 30, Issue 3, 2013, Pages 853-870

  Sauerwald, Steve ^a   Peng, Mike W ^a  

^a UNIVERSITY OF TEXAS AT DALLAS   (United States)

Author keywords

Culture; Informal institutions; Principal principal conflicts; Shareholder coalitions; Social identity theory

Indexed keywords

EID: 84881367682     PISSN: 02174561     EISSN: 15729958     Source Type: Journal    
DOI: 10.1007/s10490-012-9312-x     Document Type: Review

References (92)

1. Aguilera, R. V., Filatotchev, I., Gospel, H., & Jackson, G. 2008. An organizational approach to comparative corporate governance: Costs, contingencies, and complementarities. Organization Science, 19(3): 475-492.
2. Albert, S., & Whetten, D. A. 1985. Organizational identity. In L. L. Cummings & B. Staw (Eds.). Research in organizational behavior: 263-295. Greenwich, CT: JAI Press.
3. Ashforth, B. E. 2001. Role transitions in organizational life: An identity-based perspective. Mahwah, NJ: Lawrence Erlbaum.
4. Ashforth, B. E., Harrison, S. H., & Corley, K. G. 2008. Identification in organizations: An examination of four fundamental questions. Journal of Management, 34(3): 325-374.
5. Ashforth, B. E., & Mael, F. 1989. Social identity theory and the organization. Academy of Management Review, 14(1): 20-39.
6. Bennedsen, M., & Wolfenzon, D. 2000. The balance of power in closely held corporations. Journal of Financial Economics, 58(1-2): 113-139.
7. Black, B. S. 1990. Shareholder passivity reexamined. Michigan Law Review, 89(3): 520-608.
8. Brewer, M. B., & Gaertner, S. L. 2004. Towards reduction of prejudice: Intergroup contact and social categorization. In M. B. Brewer & M. Hewstone (Eds.). Self and social identity: 298-318. Oxford: Blackwell.
9. Brubaker, R., & Cooper, F. 2000. Beyond "identity". Theory and Society, 29(1): 1-47.
10. Chen, C. C., Peng, M. W., & Saparito, P. A. 2002. Individualism, collectivism, and opportunism: A cultural perspective on transaction cost economics. Journal of Management, 28(4): 567-583.
11. Chen, V., Li, J., & Shapiro, D. 2011. Are OECD-prescribed "good corporate governance practices" really good in an emerging economy?. Asia Pacific Journal of Management, 28(1): 115-138.
12. Chen, X.-P., & Li, S. 2005. Cross-national differences in cooperative decision-making in mixed-motive business contexts: The mediating effect of vertical and horizontal individualism. Journal of International Business Studies, 36(6): 622-636.
13. Chen, Y. Y., & Young, M. N. 2010. Cross-border mergers and acquisitions by Chinese listed companies: A principal-principal perspective. Asia Pacific Journal of Management, 27(3): 523-539.
14. Chung, H.-M. 2012. The role of family management and family ownership in diversification: The case of family business groups. Asia Pacific Journal of Management. doi: 10. 1007/s10490-012-9284-x.
15. Claessens, S., Djankov, S., & Lang, L. H. P. 2000. The separation of ownership and control in East Asian corporations. Journal of Financial Economics, 58(1-2): 81-112.
16. Coffee, J. C. 2001. Do norms matter? A cross-country evaluation. University of Pennsylvania Law Review, 149(6): 2151-2177.
17. Crespi, R., & Renneboog, L. 2010. Is (institutional) shareholder activism new? Evidence from UK shareholder coalitions in the pre-Cadbury era. Corporate Governance: An International Review, 18(4): 274-295.
18. Cruz, C. C., Gomez-Mejia, L. R., & Becerra, M. 2010. Perceptions of benevolence and the design of agency contracts: CEO-TMT relationships in family firms. Academy of Management Journal, 53(1): 69-89.
19. Daily, C. M., Dalton, D. R., & Cannella, A. A. 2003. Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3): 371-382.
20. Davis, G. F., & Thompson, T. A. 1994. A social movement perspective on corporate control. Administrative Science Quarterly, 39(1): 141-173.
21. Deephouse, D. L., & Suchman, M. 2008. Legitimacy in organizational institutionalism. In R. Greenwood, C. Oliver, R. Suddaby & K. Sahlin (Eds.). The Sage handbook of organizational institutionalism: 49-77. London: Sage.
22. Dharwadkar, R., George, G., & Brandes, P. 2000. Privatization in emerging economies: An agency theory perspective. Academy of Management Review, 25(3): 650-669.
23. Dyck, A., & Zingales, L. 2004. Private benefits of control: An international comparison. Journal of Finance, 59(2): 537-600.
24. Earley, P. C. 1989. Social loafing and collectivism: A comparison of the United States and the People's Republic of China. Administrative Science Quarterly, 34(4): 565-581.
25. Eisenhardt, K. M. 1989. Agency theory: An assessment and review. Academy of Management Review, 14(1): 57-74.
26. Estrin, S., & Prevezer, M. 2011. The role of informal institutions in corporate governance: Brazil, Russia, India, and China compared. Asia Pacific Journal of Management, 28(1): 41-67.
27. Faccio, M., & Lang, L. H. P. 2002. The ultimate ownership of Western European corporations. Journal of Financial Economics, 65(3): 365-395.
28. Faccio, M., Lang, L. H. P., & Young, L. 2001. Dividends and expropriation. American Economic Review, 91(1): 54-78.
29. Fama, E. F., & Jensen, M. C. 1983. Separation of ownership and control. Journal of Law and Economics, 26(2): 301-325.
30. Filatotchev, I., Jackson, G., & Nakajima, C. 2012. Corporate governance and national institutions: A review and emerging research agenda. Asia Pacific Journal of Management. doi: 10. 1007/s10490-012-9293-9.
31. Filatotchev, I., Zhang, X., & Piesse, J. 2011. Multiple agency perspective, family control, and private information abuse in an emerging economy. Asia Pacific Journal of Management, 28(1): 69-93.
32. Fukuyama, F. 1995. Trust: The social virtues and the creation of prosperity. New York: Free Press.
33. Globerman, S., Peng, M. W., & Shapiro, D. M. 2011. Corporate governance and Asian companies. Asia Pacific Journal of Management, 28(1): 1-14.
34. Gomez-Mejia, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J. L., & Moyano-Fuentes, J. 2007. Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative Science Quarterly, 52(1): 106-137.
35. Gomez-Mejia, L. R., Núñez-Nickel, M., & Gutierrez, I. 2001. The role of family ties in agency contracts. Academy of Management Journal, 44(1): 81-95.
36. Guiso, L., Sapienza, P., & Zingales, L. 2006. Does culture affect economic outcomes?. Journal of Economic Perspectives, 20(2): 23-48.
37. Gulati, R. 1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38(1): 85-112.
38. Helmke, G., & Levitsky, S. 2004. Informal institutions and comparative politics: A research agenda. Perspectives on Politics, 2(04): 725-740.
39. Hofstede, G. 1983. The cultural relativity of organizational practices and theories. Journal of International Business Studies, 14(2): 75-89.
40. Hofstede, G. 2007. Asian management in the 21st century. Asia Pacific Journal of Management, 24(4): 411-420.
41. Hogg, M. A. 2000. Subjective uncertainty reduction through self-categorization: A motivational theory of social identity processes. European Review of Social Psychology, 11(1): 223-255.
42. Hogg, M. A. 2002. Social categorization, depersonalization, and group behavior. In M. A. Hogg & R. S. Tindale (Eds.). Blackwell handbook of social psychology: Group processes. Oxford: Blackwell.
43. Hogg, M. A., & Terry, D. J. 2000. Social identity and self-categorization processes in organizational contexts. Academy of Management Review, 25(1): 121-140.
44. Huddy, L. 2001. From social to political identity: A critical examination of social identity theory. Political Psychology, 22(1): 127-156.
45. Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4): 305-360.
46. Jiang, Y., & Peng, M. W. 2011a. Are family ownership and control in large firms good, bad, or irrelevant?. Asia Pacific Journal of Management, 28(1): 15-39.
47. Jiang, Y., & Peng, M. W. 2011b. Principal-principal conflicts during crisis. Asia Pacific Journal of Management, 28(4): 683-695.
48. Klandermans, B. 1984. Mobilization and participation: Social-psychological expansisons of resource mobilization theory. American Sociological Review, 49(5): 583-600.
49. Korostelina, K. V. 2007. Social identity and conflict: Structures, dynamics, and implications. New York: Palgrave Macmillan.
50. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 1999. Corporate ownership around the world. Journal of Finance, 54(2): 471-517.
51. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2008. The economic consequences of legal origins. Journal of Economic Literature, 46(2): 285-332.
52. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 1997. Legal determinants of external finance. Journal of Finance, 52(3): 1131-1150.
53. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 1998. Law and finance. Journal of Political Economy, 106(6): 1113-1155.
54. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. 2000. Investor protection and corporate governance. Journal of Financial Economics, 58(1-2): 3-27.
55. Liu, W., Yang, H., & Zhang, G. 2012. Does family business excel in firm performance? An institution-based view. Asia Pacific Journal of Management. doi: 10. 1007/s10490-010-9216-6.
56. Luo, J., Wan, D., & Cai, D. 2012. The private benefits of control in Chinese listed firms: Do cash flow rights always reduce controlling shareholders' tunneling?. Asia Pacific Journal of Management, 29(2): 499-518.
57. Luo, X. R., & Chung, C.-N. 2012. Filling or abusing the institutional void? Ownership and management control of public family businesses in an emerging market. Organization Science. doi: 10. 1287/orsc. 1120. 0751.
58. Maury, B., & Pajuste, A. 2005. Multiple large shareholders and firm value. Journal of Banking & Finance, 29(7): 1813-1834.
59. Mayer, R. C., Davis, J. H., & Schoorman, F. D. 1995. An integrative model of organizational trust. Academy of Management Review, 20(3): 709-734.
60. Meyer, K. E. 2007. Contextualising organisational learning: Lyles and Salk in the context of their research. Journal of International Business Studies, 38(1): 27-37.
61. Morck, R., Wolfenzon, D., & Yeung, B. 2005. Corporate governance, economic entrenchment, and growth. Journal of Economic Literature, 43(3): 655-720.
62. Nenova, T. 2003. The value of corporate voting rights and control: A cross-country analysis. Journal of Financial Economics, 68(3): 325-351.
63. North, D. C. 1990. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
64. Peng, M. W., & Jiang, Y. 2010. Institutions behind family ownership and control in large firms. Journal of Management Studies, 47(2): 253-273.
65. Peng, M. W., & Sauerwald, S. 2012. Principal-principal conflicts. In M. Wright, D. S. Siegel, K. Keasey & I. Filatotchev (Eds.). The Oxford handbook of corporate governance. Oxford: Oxford University Press.
66. Peng, M. W., Sun, S. L., Pinkham, B., & Chen, H. 2009. The institution-based view as a third leg for a strategy tripod. Academy of Management Perspectives, 23(3): 63-81.
67. Peng, M. W., Wang, D. Y. L., & Jiang, Y. 2008. An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies, 39(5): 920-936.
68. Peteraf, M., & Shanley, M. 1997. Getting to know you: A theory of strategic group identity. Strategic Management Journal, 18(Summer Special): 165-186.
69. Podolny, J. M. 2005. Status signals: A sociological study of market competition. Princeton, NJ: Princeton University Press.
70. Pratt, M. G., & Foreman, P. O. 2000. Classifying managerial responses to multiple organizational identities. Academy of Management Review, 25(1): 18-42.
71. Rao, H., Davis, G. F., & Ward, A. 2000. Embeddedness, social identity and mobility: Why firms leave the NASDAQ and join the New York Stock Exchange. Administrative Science Quarterly, 45(2): 268-292.
72. Renders, A., & Gaeremynck, A. 2012. Corporate governance, principal-principal agency conflicts, and firm value in European listed companies. Corporate Governance: An International Review, 20(2): 125-143.
73. Rowley, T. J., & Moldoveanu, M. 2003. When will stakeholder groups act? An interest-and identity-based model of stakeholder group mobilization. Academy of Management Review, 28(2): 204-219.
74. Scott, W. R. 2007. Institutions and organizations: Ideas and interests, 3rd ed. Thousand Oaks, CA: Sage.
75. Shleifer, A., & Vishny, R. W. 1997. A survey of corporate governance. Journal of Finance, 52(2): 737-784.
76. Simon, B., & Klandermans, B. 2001. Politicized collective identity: A social psychological analysis. American Psychologist, 56(4): 319-331.
77. Singh, K. 2007. The limited relevance of culture to strategy. Asia Pacific Journal of Management, 24(4): 421-428.
78. Stryker, S., & Burke, P. J. 2000. The past, present, and future of an identity theory. Social Psychology Quarterly, 63(4): 284-297.
79. Stulz, R. M., & Williamson, R. 2003. Culture, openness, and finance. Journal of Financial Economics, 70(3): 313-349.
80. Su, W., & Lee, C.-Y. 2012. Effects of corporate governance on risk taking in Taiwanese family firms during institutional reform. Asia Pacific Journal of Management. doi: 10. 1007/s10490-012-9292-x.
81. Tajfel, H. 1982. Social psychology of intergroup relations. Annual Review of Psychology, 33(1): 1-39.
82. Tajfel, H., & Turner, J. C. 1986. The social identity theory of intergroup behavior. In S. Worchel & W. G. Austin (Eds.). Psychology of intergroup relations, 2nd ed. Chicago: Nelson-Hall.
83. Triandis, H. C. 1995. Individualism & collectivism. Boulder, CO: Westview Press.
84. Wathne, K. H., & Heide, J. B. 2000. Opportunism in interfirm relationships: Forms, outcomes, and solutions. Journal of Marketing, 64(4): 36-51.
85. Williamson, O. E. 1985. The economic institutions of capitalism. New York: Free Press.
86. Williamson, O. E. 1993. Calculativeness, trust, and economic organization. Journal of Law and Economics, 36(1): 453-486.
87. Williamson, O. E. 2000. The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3): 595-613.
88. Wu, J., Xu, D., & Phan, P. 2011. The effects of ownership concentration and corporate debt on corporate divestitures in Chinese listed firms. Asia Pacific Journal of Management, 28(1): 95-114.
89. Yamagishi, T. 1988. The provision of a sanctioning system in the United States and Japan. Social Psychology Quarterly, 51(3): 265-271.
90. Yamagishi, T., Hashimoto, H., & Schug, J. 2008. Preferences versus strategies as explanations for culture-specific behavior. Psychological Science, 19(6): 579-584.
91. Young, M. N., Peng, M. W., Ahlstrom, D., Bruton, G. D., & Jiang, Y. 2008. Corporate governance in emerging economies: A review of the principal-principal perspective. Journal of Management Studies, 45(1): 196-220.
92. Zwiebel, J. 1995. Block investment and partial benefits of corporate control. Review of Economic Studies, 62(2): 161-185.