We model a firm in an institutional market setting, consisting of a production technology and its governance. The governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the firm is determined by profit maximization under the...

A hierarchically structured rent-seeking contest may be associated with lower equilibrium expenditure than a corresponding flat contest. In this chapter we discuss how this fact may be used to explain the structure of organizations such as firms, including why firms commonly have outside owners.

Leaders play crucial roles in their enterprises. Most modern organizations today, such as corporations and government departments, have no leaders. About 80% of all organizations have no top structures, and are run by inertia as leaderless organizations. These organizations have pretense-pseudo...

The objective of the study is to contemplate the effectiveness of hierarchical CEO succession and hierarchical CEO succession intensity on SOEs & Non-SOEs performance separately. Meanwhile, the impact of hierarchical CEO succession on cash holdings has also been analysed. The authenticated data...

In den vergangenen Jahrzehnten ist ein Trend hin zu flacheren Organisationen mit weniger Hierarchieebenen zu verzeichnen gewesen. Eine Verringerung der Anzahl an Führungsstufen kann sowohl positive als auch negative Auswirkungen auf den wirtschaftlichen Erfolg eines Unternehmens haben. Der...