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The introduction of the ideology of maximizing shareholder value and the rise of institutional investors in LMEs contributed to the development of an active MCC, which threatens managers with replacement if they do not act in the best interests of shareholders. However, some authors argue that restructuring for shareholder value through the MCC may negatively affect labor (Froud et al., 2000; Lazonick and O'Sullivan, 2000). It is suggested that such corporate governance practices may discourage employees from investing in firm-specific human capital and may pressurize managers into taking short-term profit-maximizing actions instead of investing in long-term sustainable projects (Blair, 1995).
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