To read this content please select one of the options below:

An extension of stakeholder theory research: developing surrogates for net organizational capital

Mark E. Steadman (College of Business, East Tennessee State University, Johnson City, Tennessee, USA)
Ronald F. Green (College of Business, East Tennessee State University, Johnson City, Tennessee, USA)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 1 April 1997

1047

Abstract

For those interested in studying the effects of stakeholder theory on organizational performance, the establishment of measures that represent both explicit and implicit claims on the firm’s outputs is vital. While net organizational capital (NOC) has been shown to represent the value of the firm after honouring implicit claims of stakeholder groups, practical application requires the use of surrogates such as net intangible assets (NIA). Attempts to extend research in this area by establishing additional surrogates, segment sales (SS) and research and development intensity (RD), which can be easily calculated and reflect operating characteristics of the organization being observed. Concludes that RD is a reasonable indicator of the firm’s NIA for both bond upgrade and downgrade situations, but that SS can be viewed as a surrogate for NIA during upgrade situations. Both, however, can provide great insights to the researcher and can be used to assist in classifying firms with respect to stakeholder group influence.

Keywords

Citation

Steadman, M.E. and Green, R.F. (1997), "An extension of stakeholder theory research: developing surrogates for net organizational capital", Managerial Auditing Journal, Vol. 12 No. 3, pp. 142-147. https://doi.org/10.1108/02686909710161031

Publisher

:

MCB UP Ltd

Copyright © 1997, MCB UP Limited

Related articles