| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5086776 | Journal of Accounting and Economics | 2012 | 20 Pages |
Abstract
⺠We contrast the performance of centralized and delegated capital budgeting. ⺠We find that delegation improves the privately informed manager's incentives to improve the expected profitability of an investment project. ⺠We identify the conditions under which it is optimal to exercise central control over or to delegate investment decisions. ⺠We relate these conditions to characteristics of firms' investment opportunity sets.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Sunil Dutta, Qintao Fan,