Please use this identifier to cite or link to this item:
Title: Concentrated ownership, socioemotional wealth, and the “third possibility”: bringing society back in
Authors: Heracleous, L 
Lan, LL 
Keywords: Corporate governance
concentrated ownership
socio-emotional wealth
legal theory
Issue Date: 1-Jan-2022
Publisher: Emerald Publishing Limited
Citation: Heracleous, L, Lan, LL (2022-01-01). Concentrated ownership, socioemotional wealth, and the “third possibility”: bringing society back in. Research in the Sociology of Organizations 78 : 13-30. ScholarBank@NUS Repository.
Abstract: Concentrated ownership implies greater alignment between ownership and control, mitigating the agency problem. However, it may also engender governance challenges such as funds appropriation through related party transactions and the oppression of minority shareholders, especially in the context of weak legal systems. We draw from legal theory (the tradeoff controlling shareholder model and private benefits of control) and from organization theory (socioemotional wealth), to suggest that concentrated ownership can be beneficial in both robust and weak legal systems for different reasons. We advance theory on the effects of controlling shareholders and suggest that the longer-term outlook associated with engaged concentrated ownership can aid the shift of the corporation toward Berle and Means' (1932, p. 355) “third possibility” of corporations serving the interests of not just the stockholders or management but also of society.
Source Title: Research in the Sociology of Organizations
ISSN: 0733558X
DOI: 10.1108/S0733-558X20220000078001
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Concentrated Ownership-Print version.pdfPublished version972.29 kBAdobe PDF



Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.