Institutional Sources of Boundary-Spanning Structures: The Establishment of Investor Relations Departments in the Fortune 500 Industrials

  • Rao H
  • Sivakumar K
  • 156

    Readers

    Mendeley users who have this article in their library.
  • 165

    Citations

    Citations of this article.

Abstract

The coercive and mimetic conditions leading to the establishment of investor relations departments among Fortune 500 industrial firms during the 1984-1994 period are analyzed. The results show that anti-management resolutions brought to a vote by social movement activists significantly contributed to the establishment of investor relations departments. Intense scrutiny by financial analysts also impelled firms to create such departments. Whereas social movement activists framed shareholder rights as a problem and compelled organizations to uphold them, professional analysts subtly coerced organizations to signal their commitment to investor rights by creating boundary-spanning structures. That solution was transmitted through board interlocks to other organizations.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Hayagreeva Rao

  • Kumar Sivakumar

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free