Manager Replacement, Employee Protest, and Corporate Control Articles uri icon

publication date

  • September 2016

start page

  • 265

end page

  • 294


  • 3


  • 17

International Standard Serial Number (ISSN)

  • 1435-6104

Electronic International Standard Serial Number (EISSN)

  • 1435-8131


  • When faced with the replacement threat, incumbent managers look for support from employees by investing in a non-contractible employee-friendly relationship. Enjoying the relationship, employees help managers preserve their job by protesting against shareholders. When the benefits from the good employee-manager relationship are large enough to cover the loss of managerial inefficiency, shareholders prefer to share the influential power at the firm with employees.


  • corporate governance; manager replacement; non-contractable relationship investment; employee protest; power sharing; governance; authority