Managerial delegation is essential for firm growth. While firms in poor countries often shun outside managers and instead recruit among family members, the pattern is quite the opposite for firms in rich countries. In this paper, we ask whether these differences in managerial delegation have...

This paper analyses optimal financing contracts between potentially optimistic entrepreneurs and potentially supportive financiers. The presence of optimistic entrepreneurs (who overestimate their personal abilities to manage their venture) leads realistic financiers to bring managerial support...

Managerial delegation is essential for firm growth. While firms in poor countries often shun outside managers and instead recruit among family members, the pattern is quite the opposite for firms in rich countries. In this paper, we ask whether these differences in managerial delegation have...

This paper analyses optimal financing contracts between potentially optimistic entrepreneurs and potentially supportive financiers. The presence of optimistic entrepreneurs (who overestimate their personal abilities to manage their venture) leads realistic financiers to bring managerial support...

This study examines the impact of firm-level managerial delegation on aggregate economy. First, managerial delegation demands skilled labor and hence affects the labor market. Second, managerial delegation also affects the product market by improving production efficiency. Managerial delegation...