Shareholder Empowerment A New Era in Corporate Governance

In this volume, leading management experts offer critical insights into the promises and illusions of shareholder empowerment, the discrepancies between theory and practice, and the challenges posed by variations in global corporate governance regimes.

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Shareholder Empowerment A New Era in Corporate Governance Edited by

Maria Goranova and Lori Verstegen Ryan

SHAREHOLDER EMPOWERMENT

Selection and editorial content © Maria Goranova and Lori Verstegen Ryan 2015 Individual chapters © their respective contributors 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-37644-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2015 by PALGRAVE MACMILLAN The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN 978-1-349-57239-7 E-PDF ISBN: 978–1–137–37393–9 DOI: 10.1057/9781137373939 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data Shareholder empowerment : a new era in corporate governance / edited by Maria Goranova and Lori Verstegen Ryan. pages cm Includes bibliographical references and index. 1. Corporate governance. 2. Stockholders. 3. Corporations—Investor relations. I. Goranova, Maria. II. Ryan, Lori Verstegen. HD2741.S4823 2015 659.2985—dc23 A catalogue record of the book is available from the British Library.

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Contents

List of Illustrations

vii

Foreword by David H. Batchelder

ix

List of Abbreviations

xi

Chapter 1 Shareholder Empowerment: An Introduction Maria Goranova and Lori Verstegen Ryan

1

Part I Shareholder Empowerment: Promises and Illusions Chapter 2 Combining Financial and Psychological Insights for a New Typology of Ownership Katarina Sikavica and Amy J. Hillman

35

Chapter 3 Is Shareholder Empowerment a “Good Thing”? Kevin Morrell and Loizos Heracleous

63

Chapter 4 Shareholder Democracy as a Misbegotten Metaphor Ann K. Buchholtz and Jill A. Brown

81

Chapter 5 “Agents without Principals” Revisited: Theorizing the Effects of Increased Shareholder Participation in Corporate Governance Thomas M. Jones and Adrian A. C. Keevil