336 Part 3: Strategic Actions: Strategy Implementation
Sources: E. Bloxham, 2015, J.P. Morgan: Taking on more risk than it
can handle?. Fortune, http://www.fortune.com, May 14; S. Gandel, 2015, After
complaining about regulations, JPMorgan Chase beats estimates—again.
Fortune, http://www.fortune.com, April 29; E. Glazer, 2014, J.P. Morgan’s decade
of Dimon, Wall Street Journal, June 30, C1; J. Eisinger, 2013, Flawed system
suits the shareholders just fine, New York Times DealBook, http://dealbook.
nytimes.com, May 29; J. Plender, 2013, The divine right of the imperial
CEO, Financial Times, http://www.ft.com, May 26; J. Sommer, 2013, The CEO
triumphant (at least at Apple and Chase), New York Times, http://www.nytimes.
com, May 25; H. Moore, 2013, JP Morgan CEO Jamie Dimon remains
the Indiana Jones of corporate America, The Guardian, http://www.guardian.
com, May 21; J. Silver-Greenberg & S. Craig, 2013, Strong lobbying helps
Dimon thwart a shareholder challenge, New York Times DealBook, http://
dealbook.nytimes.com, May 21; D. Fitzpatrick, J. S. Lublin, & J. Steinberg,
2013, Vote strengthens Dimon’s grip, Wall Street Journal, http://www.wsj.com,
May 21; A. T. Crane & A. Currie, 2013, Dimon’s Pyrrhic victory, New York
Times DealBook, http://dealbook.nytimes.com, May 21; D. Benoit, 2013,
J.P. Morgan’s powerful board members, Wall Street Journal, http://www.wsj.com,
May 20; M. Egan, 2013, Top J.P. Morgan directors back Dimon as CEO,
Chair, Fox Business, http://www.foxbusiness.com, May 10.
Case Discussion Questions
- How well do you think the governance system of JPMorgan
Chase is working in protecting shareholder interests? - What particular governance devices are helping or hindering
good governance in the JPMorgan Chase situation?
3. What do you recommend to improve the governance system
specifically for JPMorgan Chase but also overall relative to the
system of governance devices described in Chapter 10?
NOTES
- G. Subramanian, 2015, Corporate
governance 2.0. Harvard Business Review,
93(3): 96–105; X. Castaner & N. Kavadis,
2013, Does good governance prevent bad
strategy? A study of corporate governance,
financial diversification, and value creation
by French corporations, 2000–2006,
Strategic Management Journal, 34: 863–876. - I. Filatotchev & C. Nakajima, C. 2014,
Corporate governance, responsible
managerial behavior, and corporate social
responsibility: Organizational efficiency
versus organizational legitimacy? Academy
of Management Perspectives, 28: 289–306;
A. P. Cowen & J. J. Marcel, 2011, Damaged
goods: Board decisions to dismiss
reputationally compromised directors,
Academy of Management Journal, 54:
509–527. - J. Joseph, W. Ocasio, & M. McDonnell,
2014, The structural elaboration of
board independence: Executive power,
institutional logics, and the adoption
of CEO-only board structures in U.S.
corporate governance, Academy of
Management Journal, 57: 1834–1858; P. J.
Davis, 2013, Senior executives and their
boards: Toward a more involved director,
Journal of Business Strategy, 34(1): 3–40. - S. Ayuso, M. A. Rodríguez, R. García-
Castro, & M. A. Ariño, 2014, Maximizing
stakeholders’ interests: An empirical
analysis of the stakeholder approach
to corporate governance, Business &
Society, 53: 414–439; D. R. Dalton, M. A.
Hitt, S. T. Certo, & C. M. Dalton, 2008, The
fundamental agency problem and its
mitigation: Independence, equity and
the market for corporate control, in J. P.
Walsh and A. P. Brief (eds.), The Academy
of Management Annals, NY: Lawrence
Erlbaum Associates, 1–64; E. F. Fama &^
M. C. Jensen, 1983, Separation of
ownership and control, Journal of Law and
Economics, 26: 301–325.
- H. Zeitoun, M. Osterloh, & B. S. Frey, 2014,
Learning from ancient Athens: Demarchy
and corporate governance, Academy of
Management Perspectives, 28: 1–14; J. S.
Harrison, D. A. Bosse, & R. A. Phillips, 2010,
Managing for stakeholders, stakeholder
utility functions, and competitive
advantage, Strategic Management Journal,
31: 58–74. - B. Soltani & C. Maupetit, 2015, Importance
of core values of ethics, integrity and
accountability in the European corporate
governance codes, Journal of Management
& Governance, 19: 259–284; T. J. Boulton, S. B.
Smart, & C. J. Zutter, 2010, IPO underpricing
and international corporate governance,
Journal of International Business Studies, 41:
206–222. - A. Capasso, G. Dagnino, & W. Shen, 2014,
Special issue on ‘corporate governance
and strategic management in different
contexts: Fostering interchange of a crucial
relationship’, Journal of Management
& Governance, 18: 921–927; E. Vaara, R.
Sarala, G. K. Stahl, & I. Bjorkman, 2012, The
impact of organizational and national
cultural differences on social conflict
and knowledge transfer in international
acquisitions, Journal of Management
Studies, 49: 1–27; W. Judge, 2010, Corporate
governance mechanisms throughout
the world, Corporate Governance: An
International Review, 18: 159–160.
- L. S. Tsui-Auch & T. Yoshikawa, 2015,
Institutional change versus resilience:^
A study of incorporation of independent
directors in Singapore banks,
Asian Business & Management, 14: 91–115. - G. Bell, I. Filatotchev, & R. Aguilera, 2014,
Corporate governance and investors’
perceptions of foreign IPO value: An
institutional perspective, Academy of
Management Journal, 57: 301–320; W. Kim,
T. Sung, & S.-J. Wei, 2011, Does corporate
governance risk at home affect investment
choice abroad? Journal of International
Economics, 85: 25–41. - H. Servaes & A. Tamayo, 2014, How do
industry peers respond to control threats?.
Management Science, 60: 380–399; J. Lee,
2013, Dancing with the enemy? Relational
hazards and the contingent value of repeat
exchanges in M&A markets, Organization
Science, 24: 1237–1256; M. A. Hitt, R. E.
Hoskisson, R. A. Johnson, & D. D. Moesel,
1996, The market for corporate control and
firm innovation, Academy of Management
Journal, 45: 697–716. - G. E. Davis & T. A. Thompson, 1994, A social
movement perspective on corporate
control, Administrative Science Quarterly,
39: 141–173. - F. Bertoni, M. Meoli, & S. Vismara, 2014,
Board Independence, Ownership
structure and the valuation of IPOs in
Continental Europe, Corporate Governance: