TY - GEN
T1 - IMPACT OF OWNERSHIP STRUCTURE ON COMMUNICATION OF CORPORATE STRATEGY
AU - Wong, Sze Sze
AU - LI, Heather
AU - Shen, Rui
PY - 2021
Y1 - 2021
N2 - Past research on strategy communication view investors as a monolithic group, even though institutional investors are heterogeneous in trading strategies. Building on research that highlights the distinctive trading preference of transient institutional investors, we explain that leaders strategically tailor the content of their strategic communication to appeal to this group. We find that leaders selectively emphasize corporate growth and de-emphasize corporate refocusing in their strategic communication when their firm has higher transient ownership. We also integrate managerial discretion theory to examine the conditions when leaders engage in less catering of their strategic communication to transient investors.
AB - Past research on strategy communication view investors as a monolithic group, even though institutional investors are heterogeneous in trading strategies. Building on research that highlights the distinctive trading preference of transient institutional investors, we explain that leaders strategically tailor the content of their strategic communication to appeal to this group. We find that leaders selectively emphasize corporate growth and de-emphasize corporate refocusing in their strategic communication when their firm has higher transient ownership. We also integrate managerial discretion theory to examine the conditions when leaders engage in less catering of their strategic communication to transient investors.
UR - https://dx.doi.org/10.5465/AMBPP.2021.95
U2 - 10.5465/ambpp.2021.95
DO - 10.5465/ambpp.2021.95
M3 - Conference contribution
BT - 81st Annual Meeting of the Academy of Management 2021: Bringing the Manager Back in Management, AoM 2021
ER -