Who Should Control a Corporation? Toward a Contingency Stakeholder Model for Allocating Ownership Rights

Journal of Business Ethics 103 (2):255-274 (2011)
A number of companies allocate ownership rights to stakeholders different from shareholders, despite the fact that the law attributes these rights to the equity holders. This article contributes to an understanding of this evidence by developing a contingency model for the allocation of ownership rights. The model sheds light on why companies, despite pressures from the law, vary in their allocation of ownership rights. The model is based on the assumption that corporations increase their chance to survive and prosper if the stakeholders supplying “critical contributions” receive the ownership rights. According to the model, “critical” contributions involve (1) contractual problems due to specific investments, long-term relationships, and low measurability; (2) the assumption of the uncertainty resting on the company; and (3) the supply of scarce and valuable resources. The model is dynamic because it also provides a basis for understanding why the allocation of ownership rights changes with time. Finally, the article presents the strategies companies can use to realize an efficient distribution of ownership rights among their stakeholders.
Keywords corporate governance  ownership rights  shareholder theory  stakeholder theory
Categories (categorize this paper)
DOI 10.1007/s10551-011-0864-3
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 15,865
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA

View all 10 references / Add more references

Citations of this work BETA

Add more citations

Similar books and articles
Peter Vallentyne (2001). Self-Ownership. In Laurence Becker & Charlotte Becker (eds.), Encyclopedia of Ethics, 2nd edition. Garland Publishing
Vincent Norcia (1988). Mergers, Takeovers, and a Property Ethic. Journal of Business Ethics 7 (1-2):109 - 116.
J. M. Elegido (1995). Intrinsic Limitations of Property Rights. Journal of Business Ethics 14 (5):411 - 416.
Mathias Risse (2012). On Global Justice. Princeton University Press.
J. E. Penner (2006). Ownership, Co-Ownership, and the Justification of Property Rights. In J. W. Harris, Timothy Andrew Orville Endicott, Joshua Getzler & Edwin Peel (eds.), Properties of Law: Essays in Honour of Jim Harris. Oxford University Press
Anders Eriksson & Kalle Grill, Who Owns My Avatar? -Rights in Virtual Property. Proceedings of DiGRA 2005 Conference: Changing Views – Worlds in Play.
Karl Widerquist (2009). A Dilemma for Libertarianism. Politics, Philosophy and Economics 8 (1):43-72.

Monthly downloads

Added to index


Total downloads

19 ( #144,870 of 1,724,890 )

Recent downloads (6 months)

1 ( #349,164 of 1,724,890 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.