In this paper, we investigate the antecedents of inertia in capital allocation decisions in organizations. Despite the importance of flexible capital reallocation, empirical evidence points to remarkably high levels of stability in these decisions. Adopting a behavioral perspective, we focus on...

We examine the influence of interdependencies on parent companies’ cash flow rights in their subsidiaries, focusing on two forms of interdependency that characterize multiunit firms: relatedness and multimarket contact. Specifically, we argue that interdependencies affect the extent of a...

Taking advantage of the staggered timing of shocks to the availability of wage information for US academics we show that, across a range of metrics, transparency causes no decrease and, in some cases, results in an increase in performance outcomes. However, productivity responses predictably...