Is firm behavior mainly driven by its environment or rather by the characteristics of its managers? We develop a … managerial expertise then may result in dramatically different firm behavior, as managers devote scarce attention in a way which … manager fixed effects. Firm owners prefer managers with task-specific expertise only in complex environments …

opportunity cost is larger than the worker's (a bias in favor of micro-management). When the upstream task is hard, by contrast … of macro-management). We also discuss distortions in the project output schedules in each case to show that the central …