In an experiment, we model two stylized facts about capital budgeting practice, budgetary slack creation and delegation … gives a cost report, and headquarters decides on the project. Under delegation, headquarters allocates a budget to the … a budget moderates the effect of delegation, and we find evidence in favor of our argument as there is an interaction …

In an experiment, we model two stylized facts about capital budgeting practice, budgetary slack creation and delegation … gives a cost report, and headquarters decides on the project. Under delegation, headquarters allocates a budget to the … a budget moderates the effect of delegation, and we find evidence in favor of our argument as there is an interaction …

principal can benefit from such delegation relative to centralization. We show that beneficial delegation is possible when … complete contracts cannot be written, and delegation of authority should necessarily be to the information gatherer. The … benefits of delegation stem from either efficiency gains or reduction in rent to the information gatherer. …

principal can benefit from such delegation relative to centralization. We show that beneficial delegation is possible when … complete contracts cannot be written, and delegation of authority should necessarily be to the information gatherer. The benets … of delegation stem from either efficiency gains or reduction in rent to the information gatherer. …