[In fact, share-farmed lands yield as much as rented or owner-cultivated lands. In traditional theory, share-farmed lands yield less, for share tenants stint their efforts. This article shows that economists' standard assumptions about a market equilibrium reconcile theory with fact: when contracts are enforced, share farmers labor as diligently as others. Evidence is advanced that gain from the joining of tenant and landlord interests, not gain from the dispersion of agricultural risk, is the impetus to share tenancy.]

In fact, share-farmed lands yield as much as rented or owner-cultivated lands. In traditional theory, share-farmed lands yield less, for share tenants stint their efforts. This article shows that economists' standard assumptions about a market equilibrium reconcile theory with fact: when contracts are enforced, share farmers labor as diligently as others. Evidence is advanced that gain from the joining of tenant and landlord interests, not gain from the dispersion of agricultural risk, is the impetus to share tenancy.

ABSTRACT We examine the effect of stakeholder orientation on firms' cost management as proxied by selling, general, and administrative (SG&A) cost stickiness. Using a sample of 19,783 firm‐years, we find that customer and employee orientation are associated with greater SG&A cost stickiness. Furthermore, the effect of customer orientation on SG&A cost stickiness is more prominent in firms where SG&A costs create high future value, growth firms, and firms with strong corporate governance. In contrast, the effect of employee orientation on SG&A cost stickiness is stronger in firms where SG&A costs create low future value, mature firms, and firms with weak corporate governance. Overall, the association between customer orientation and SG&A cost stickiness is consistent with efficiency considerations (i.e., adjustment costs). In contrast, the association between employee orientation and SG&A cost stickiness is consistent with agency motives such as empire building or “a preference for a quiet life.” In sum, we provide evidence that corporate orientation toward different stakeholders can have different efficiency implications in the context of SG&A resource adjustments and cost management.