Informal institutions, shareholder coalitions, and principal-principal conflicts

How do informal institutions affect conflicts between controlling and minority shareholders, also known as principal-principal (PP) conflicts? The dominant formal institution-based view of corporate governance suggests that legal rules and regulations are crucial for the protection of shareholder ri...

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Main Authors: Sauerwald, S., Peng, Mike
Format: Journal Article
Published: Springer New York LLC 2013
Online Access:http://hdl.handle.net/20.500.11937/50135
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author Sauerwald, S.
Peng, Mike
author_facet Sauerwald, S.
Peng, Mike
author_sort Sauerwald, S.
building Curtin Institutional Repository
collection Online Access
description How do informal institutions affect conflicts between controlling and minority shareholders, also known as principal-principal (PP) conflicts? The dominant formal institution-based view of corporate governance suggests that legal rules and regulations are crucial for the protection of shareholder rights. While this perspective has significantly advances our understanding of international corporate governance, we suggest that more attention to informal institutions may complement the formal approach. First, we utilize social identity theory to shed light on the formation of shareholder coalitions. Second, we draw on research involving informal institutions such as culture and trust to better understand PP conflicts. Overall, we extend the growing literature on PP conflicts by an explicit focus on informal institutions.
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spelling curtin-20.500.11937-501352017-09-13T15:37:03Z Informal institutions, shareholder coalitions, and principal-principal conflicts Sauerwald, S. Peng, Mike How do informal institutions affect conflicts between controlling and minority shareholders, also known as principal-principal (PP) conflicts? The dominant formal institution-based view of corporate governance suggests that legal rules and regulations are crucial for the protection of shareholder rights. While this perspective has significantly advances our understanding of international corporate governance, we suggest that more attention to informal institutions may complement the formal approach. First, we utilize social identity theory to shed light on the formation of shareholder coalitions. Second, we draw on research involving informal institutions such as culture and trust to better understand PP conflicts. Overall, we extend the growing literature on PP conflicts by an explicit focus on informal institutions. 2013 Journal Article http://hdl.handle.net/20.500.11937/50135 10.1007/s10490-012-9312-x Springer New York LLC restricted
spellingShingle Sauerwald, S.
Peng, Mike
Informal institutions, shareholder coalitions, and principal-principal conflicts
title Informal institutions, shareholder coalitions, and principal-principal conflicts
title_full Informal institutions, shareholder coalitions, and principal-principal conflicts
title_fullStr Informal institutions, shareholder coalitions, and principal-principal conflicts
title_full_unstemmed Informal institutions, shareholder coalitions, and principal-principal conflicts
title_short Informal institutions, shareholder coalitions, and principal-principal conflicts
title_sort informal institutions, shareholder coalitions, and principal-principal conflicts
url http://hdl.handle.net/20.500.11937/50135