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Theoretical And Empirical Research On Stakeholders Of The Firm

Posted on:2004-12-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:H H ChenFull Text:PDF
GTID:1116360095951100Subject:Business management
Abstract/Summary:PDF Full Text Request
Research field in theory of the firm has developed into two main branches gradually since 1960s: shareholder primacy theory vs. stakeholder theory. The former deems that shareholders hold the firm, the later, however, insists that the stakeholders are the real owner of the firm. The scholars holding different opinions debated impetuously in 1980s because the two theories had different implications in corporate governance. On the whole, shareholder primacy theory is mainstream of modern theory of the firm. Meanwhile stakeholder theory has developed rapidly since 1980s and it is considered as a useful tool helping us understand firms of the real world. But the research focus of the academe has stayed in shareholder primacy model for a long time, and scholars ignore the improvement and achievement of stakeholder theory on the contrary. Unfortunately the henomenon is very palpable in Chinese academe. Study on how to coordinate the stakeholders' interests in corporate governance structure is an important academic field in contemporary theory of the firm, and has direct and important implications for China reform particularly. In this academic and real context, the dissertation researches the realization of stakeholders' interests in Chinese firms and the implications in corporate governance.In chapter 2 the theoretical and practical backgrounds of the origin and development of stakeholder theory are studied. All the mainstream theory of the firm, in fact, -cannot prove that shareholders should possess the ownership of the firm exclusively. The stakeholder theory, however, grew up with the development of contract theory and property rights theory after 1960s. On the other hand, in 1970s enterprises all over the world encountered lots of real problems such as business ethics, corporate social responsibilities, enterprise environmental management and so on. All the problems required the firm pay more attention on its stakeholders' interests. The stakeholder theory has been improved in lots of dimensions since 1980s, but the theory system is far from perfect. In addition, the theoretical analysis of chapter 2 indicates that the fundamental bifurcation of the two theories focuses on the distribution of residual rights of the firm, which is a short for claim to residual and residual rights of control. The mainstream theory deems that residual rights of the firm should be centralized on asset owners symmetrically, but the stakeholder theory insists that it should be distributed symmetrically among asset owners and human recourse owners unbalanced. The whole differences of the two theories appear in some aspects such as what is the goal of the firm, what is the nature of the firm and what is the evolution tendency of corporate governance models. In sum, the core viewpoint of stakeholder theory can be concluded that the firm is a nexus of relationship among stakeholders, whose responsibilities and obligations are formed through explicit contracts and implicit contracts. The residual rights of the firm are distributed symmetrically, separately and unbalancedly among asset owners and human recourse owners in order to create wealth for its stakeholders and the society.The definition and classification of stakeholder are studied in chapter 3. Based on various definition of stakeholder given by western scholars, the dissertation proposes that stakeholders are those individuals and groups, who can influence and be influenced by the process of achieving the goal of the firm, and have some firm-specific investments and bear some risks accordingly. Subsequently, the dissertation classifies stakeholders in Chinese enterprise into 3 categories from 3 dimensions (voluntary, importance and urgency) using investigation data. Statistical analysis indicates that the stakeholders exist some significant differences in the three dimensions and theten stakeholders can be sorted into 3 categories: core stakeholders including shareholders, managers and employees; dormant stakeholders including suppliers, consumers, creditors, distri...
Keywords/Search Tags:Stakeholder, Stakeholders' Interest, Theory of the Firm, Corporate Governance, Principles of Balancing
PDF Full Text Request
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