Changing National Business Systems: Corporate Governance and Financing in the Netherlands, 1945–2005

Jong, Abe de; Röell, Ailsa; Westerhuis, Gerarda

doi:10.1017/s0007680500002026

Cited by 27 publications

(11 citation statements)

References 12 publications

(3 reference statements)

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“…For more detailed descriptions of the Dutch corporate governance context, see Bezemer, Maassen, van den Bosch, and Volberda (), De Jong et al (), De Jong, Roell, and Westerhuis (), Groot (), Kabir et al (), and Van Ees et al ().…”

mentioning

confidence: 99%

Power and Paradigms: The Dutch Response to Pressures for Shareholder Value

Bezemer

Zajac

Naumovska

et al. 2014

Corporate Governance

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Manuscript Type Empirical Research Question/Issue In recent years, research aimed at identifying and relating the antecedents and consequences of diffusing organizational practices/ideas has turned its attention to debating the international adoption and implementation of the Anglo‐American model of corporate governance, i.e., a shareholder value orientation (SVO). While financial economists characterize the adoption of an SVO as necessary and performance‐enhancing, behavioral scientists have disputed such claims, invoking institutional contingencies in the appropriateness of an SVO. Our study seeks to provide some resolution to the debate by developing an overarching sociopolitical perspective that links the antecedents and consequences of the adoption of the contested practice of SVO. Research Findings/Insights We test our framework using extensive longitudinal data from 1992–2006 from the largest listed corporations in the Netherlands. We find a negative relationship between SVO adoption and subsequent firm performance, although this effect is attenuated when accompanied by greater SVO alignment among major owners and a firm's visible commitment to an SVO. Theoretical/Academic Implications This study extends prior research on the diffusion of contested organizational practices that has taken a sociopolitical perspective by offering an original contingency perspective that addresses how and why the misaligned preferences of corporate owners will affect (i) a company's inclination to espouse an SVO, and (ii) the performance consequences of such misalignment. Practitioner/Policy Implications This study suggests that, when board members are considering the adoption of new ideas/practices (e.g., SVO), they should consider the contextual fitness of the idea/practice with the firm's owners and their interests.

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mentioning

confidence: 99%

Power and Paradigms: The Dutch Response to Pressures for Shareholder Value

Bezemer

Zajac

Naumovska

et al. 2014

Corporate Governance

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“…BST authors have also been interested in how MNCs change host institutional contexts and how firms and sectors evolve in those contexts (Whitley, 1998Ferner and Quintanilla, 1998;Yeung, 2000;Taino et al 2001;Morgan et al 2003;Morgan and Quack 2005;Hassel et al 2003;Lamberg and Laurila, 2005;Kristensen and Zeitlin 2001;Morgan and Kristensen, 2009;Jong et al 2010;Giroud, 2014;Ahmadjian, 2016 ;Schaumburg-Muller, 2001). MNCs when they internationalise engage in 'rule following' or 'rule affecting' or at the most dramatic, 'rule changing', thereby engaging with the institutional environment not just for their own benefit but also in ways which the pressure to increase employer discretion derives from a more intensive and focused pressure to deliver returns to shareholders, rather than sustain the more stakeholder model of the firm that has existed in many European contexts over the last 50 years.…”

Section: Juncture-ii: Internationalisation and Mnc Managementmentioning

confidence: 99%

Twenty-five years of business systems research and lessons for international business studies

Rana

Morgan

2019

International Business Review

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Since 1992 business systems theory (BST) has been increasingly used to analyse not just firm characteristics, structures and strategies within national business systems (NBS) but also the nature of international business and its interactions both with national and transnational institutions. Reviewing 25 years of NBS literature, we attend calls in IB journals suggesting to use BST notion and findings in IB research. Our systematic review of 96 articles analyses the pattern & contributions

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“…The Netherlands offers an interesting setting to study takeovers and acquisitions because Dutch firms are internationally known for the anti-takeover measures that shield managers of from the market for corporate control (De Jong et al 2010). In an international comparison, the Dutch defence measures are unique because these legal barriers directly influence the opportunities for hostile acquirers (Adams and Ferreira 2008), where in other countries structural barriers prevail, such as cross-holdings and pyramidal ownership.…”

Section: Introductionmentioning

confidence: 99%

Predicting Takeover Targets: Long-Run Evidence from the Netherlands

Jong

Fliers

2020

De Economist

Self Cite

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In the market for corporate control, the ownership and control of firms is traded. Mergers and acquisitions are major events for firms affecting the continuity and performance of firms and industries. This paper studies the determinants of takeovers in the Netherlands over a long period, 1961-2008. We conclude that until the mid-1980s targets had low leverage and high cash holdings. After this period, shareholder wealth maximization became a dominant goal, and we find that smaller and more profitable firms become targets for takeovers. In the most recent period takeover defences shield firms from takeover, while this effect is not found in the early period until the mid-1980s. We demonstrate shareholder rights have become important in determining takeover probabilities. The results illustrate the efficacy of rules and regulations and how they can effect the market for corporate control in the Netherlands.

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Changing National Business Systems: Corporate Governance and Financing in the Netherlands, 1945–2005

Cited by 27 publications

References 12 publications

Power and Paradigms: The Dutch Response to Pressures for Shareholder Value

Power and Paradigms: The Dutch Response to Pressures for Shareholder Value

Twenty-five years of business systems research and lessons for international business studies

Predicting Takeover Targets: Long-Run Evidence from the Netherlands

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