Showing 1 - 10 of 22
the ultimate decision is either taken by a leader (decision by authority) or by majority vote. Optimal communication …
Persistent link: https://www.econbiz.de/10005792030
Analyzing data from a unique survey of managers of Chinese private firms, we investigate how family ties with firm heads affect managerial compensation and job assignment. We find that family managers earn higher salaries and receive more bonuses, hold higher positions, and are given more...
Persistent link: https://www.econbiz.de/10008468597
communication technology, have a wider span of organization, and are further removed from a decision unit with lending authority …
Persistent link: https://www.econbiz.de/10005136523
This paper endogenizes coordination problems in organizations by allowing for both ex ante coordination of activities, using rules and task guidelines, and ex post coordination, using communication and broad job assignments. It shows that: (i) Task specialization and the division of labour is...
Persistent link: https://www.econbiz.de/10005497860
This paper views authority as the right to undertake decisions that impose externalities on other members of the … organization's decisions. Under asymmetric information, the efficient allocation of authority depends on the communication of …
Persistent link: https://www.econbiz.de/10005114267
The allocation of control rights in a venture does not matter if partners have congruent preferences. This Paper develops a theory of control as a signal of congruence, and applies it to the structure of alliances between a privately informed ‘entrepreneur’ (technology firm) and an...
Persistent link: https://www.econbiz.de/10005114475
Employment contracts give a principal the authority to decide flexibly which task his agent should execute. However … preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread … behavioral forces shape an important transaction cost of integration – the abuse of authority – and by providing an empirical …
Persistent link: https://www.econbiz.de/10011084462
groups depends on the leader's authority to make personnel decisions, especially whether the leader can replace team members …
Persistent link: https://www.econbiz.de/10005666493
full authority over the agents, or they hand over this authority to an outside supplier by outsourcing these activities. By … incorporating authority in a stylized model of information processing, we endogenize the comparative advantage of each form of … authority is optimal. We also show which tasks should be outsourced to align the preferences of the outside supplier with those …
Persistent link: https://www.econbiz.de/10005666539
We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but leads to weaker incentives for effort, compared with non-integration. Our theory makes minimal assumptions about the underlying agency problem. Moreover, the benefits and costs...
Persistent link: https://www.econbiz.de/10005666612