Short-Selling Pressure and Workplace Safety : Curbing Short-Termism Through Stakeholder Interdependencies

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

6 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)358–379
Journal / PublicationOrganization Science
Volume34
Issue number1
Online published2 Mar 2022
Publication statusPublished - Jan 2023

Abstract

We advance a multistakeholder framework that highlights the influence of stakeholders in tempering short-termist responses to capital market pressures. When firms face pressure from short sellers in the capital market, they sometimes shift attention to short-term stock performance and neglect critical investments that pay off in the long run. Relying on a quasi-natural experiment and establishment-level data on workplace injuries, we find that short-selling pressure causes an increase in employee injuries. Critically, however, the degree to which the response is short-termist depends on the salience of multiple stakeholders (analysts, shareholders, employees, and managers). We discuss the implications for understanding firms’ relations with their stakeholders and, particularly, how these stakeholders influence corporate responses to capital market pressures in ways that matter for long-term value creation. This study also contributes to strategy research by highlighting the downside of capital market deregulation. © 2022 INFORMS.

Research Area(s)

  • stakeholder interdependency, stakeholder salience, short-selling pressure, workplace safety, intertemporal perspective

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Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

Short-Selling Pressure and Workplace Safety: Curbing Short-Termism Through Stakeholder Interdependencies. / Qian, Cuili; Crilly, Donal; Lin, Yupeng et al.
In: Organization Science, Vol. 34, No. 1, 01.2023, p. 358–379.

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review