Research projects
Start of main content
Concealment, delegation and hierarchy of the company
8th National Competition for Economic Research Grants
Industrial economics and regulation
Senior Researcher : Susana Esteban Tavera
Research Centre or Institution : Universidad Autónoma de Barcelona.
Abstract
This project analyses how the hierarchical structure of an organisation makes it possible to conceal the abilities of its executives by means of the delegation of their decisions. Although a vertical structure permits the allocation of each task to the appropriate decision level, thus contributing to efficiency, it also enables executives to use the vertical structure to delegate decisions and thus hide their intrinsic abilities. The shareholders, however, endogenise this behaviour by modifying the structure of the company or altering employment contracts. This project analyses how two instruments (adding compensation for dismissal to the employment contract or creating a more horizontal organisational structure) interact with executives' incentives and determine equilibrium. The results indicate that horizontal organisational structures are preferable when the environment is competitive or when the abilities of the executive are critical for the company's productivity, while more hierarchical structures predominate in environments in which executives' abilities are less critical.
-
Activities related
-
Projects related
-
News related
-
Publications related
-
Thesis related
-
26
Oct
2023
Conference Audit Materiality Judgments: Insights from Regulators Madrid, Thursday, 26 October 2023, 19:00 hours
-
15
Apr
2024
Conference La economía española: una mirada al pasado. In memoriam: Pedro Tedde de Lorca Madrid, Lunes, 15 de abril de 2024, 19:30 horas
-
18
Nov
2024
Conference Richer and More Equal: A New History of Wealth in the West Madrid, Lunes 18, de noviembre de 2024, 19:00 horas
- Labour market institutions and economic cycles 2009 Senior Researcher : Evi Pappa Research Centre or Institution : Universidad Autónoma de Barcelona.
- The Perfect Tax? A Review of the Performance of the VAT with an International Perspective 2020 Senior Researcher : Miguel Almunia Candela Research Centre or Institution : Colegio Universitario de Estudios Financieros (CUNEF)
- Learning from the Customer: Online Reviews and Corporate Investment 2020 Senior Researcher : Miguel Antón Sancho Research Centre or Institution : IESE Business School. Universidad de Navarra
- Multigenerational Inequality in Spain Senior Researcher : Andrea Pîzzo Research Centre or Institution : Universidad Carlos III de Madrid.
End of main content