Shareholders and stakeholders: How do directors decide?

Renée B. Adams, Amir N. Licht*, Lilach Sagiv

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

239 Scopus citations


This study examines how directors make decisions that involve shareholders and other stakeholders. Using vignettes derived from seminal court cases, we construct an index of directors' shareholderism as a general orientation on this issue. In a survey of the entire population of directors and CEOs in public corporations in one country, we find that directors' personal values and roles play an important part in their decisions. Directors and CEOs are more pro-shareholder the more they endorse entrepreneurial valuesa specifically, higher achievement, power, and self-direction values and lower universalism values. While employee representative directors exhibit a lower baseline level of shareholder orientation, they nonetheless often side with shareholders.

Original languageAmerican English
Pages (from-to)1331-1355
Number of pages25
JournalStrategic Management Journal
Issue number12
StatePublished - Dec 2011


  • corporate governance
  • directors
  • shareholderism
  • stakeholders
  • values


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