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News and corporate governance: what Dow Jones and Reuters teach us about stewardship

Nordberg, Donald (2007) News and corporate governance: what Dow Jones and Reuters teach us about stewardship. Working Paper. Centre for Board Effectiveness, Henley Management College.

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Official URL: http://ssrn.com/abstract=1004745

Abstract

The outcomes of near simultaneous bids for the news organizations Reuters Group plc and Dow Jones & Co. Inc. in 2007 hinged on mechanisms of corporate governance put in place at each company to protect the integrity and independence of the editorial operations. Neither company is a particularly model of good governance, since the restrictions - super-voting shares at DJ, veto-power by the trustees of the Founders Share Company at Reuters - almost completely rule out an open market for corporate control. This paper looks at Reuters - and in even greater detail at Dow Jones, where the private actions of the board and shareholders came into rare public view. It suggests that stewardship theory plays a large role in protecting a perceived social value of the integrity of the news, figuring more heavily in crucial board decision-making than shareholder value. But the outcome of both cases means that the tension between the two is not easily resolved.

Item Type:Monograph (Working Paper)
Additional Information:Paper presented at the 10th International Conference on Corporate Governance and Board Leadership, 2-4 October 2007, Centre for Board Effectiveness, Henley Management College
Research Community:University of Westminster > Westminster Business School
ID Code:7690
Deposited On:09 Mar 2010 16:16
Last Modified:09 Mar 2010 16:16

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