Volume 10, 1999
Proceedings of the Tenth Annual Meeting
Shawn Berman, Heather Elms
Visionary Companies and Their Stakeholders
Do Shareholders Share the Vision?
This paper reviews and evaluates the current literature on visionary companies by empirically examining the behavior of shareholders in these companies. Given the articulated interest of these companies in long-term performance, shareholders in visionary companies should demonstrate lower rates of share turnover than shareholders in non-visionary companies. Results indicate instead that shareholders in visionary and non-visionary companies do not demonstrate significantly different rates of share turnover. These results suggest that shareholders in visionary companies do not share the vision, and thus question the ultimate effectiveness of these visions.