Product-market competition and managerial slack
نویسنده
چکیده
This article analyzes the effect of product-market competition on managerial incentives. In contrast to Hart (1983a), I show that competition may actually exacerbate the incentive problem. The difference in results derives from our different assumptions about managerial preferences. The importance of assumptions about preferences suggests that we do not yet understand the precise mechanism through which competition affects incentives.
منابع مشابه
تأثیر ساختارهای رقابتی بازار محصول بر مدیریت واقعی سود با تاکید بر ساختار مالکیت
چکیده رقابت در بازار محصولات، یک مکانیزم عالی برای تخصیص بهینه منابع تشکیل داده و دارای اثرهای انضباطی بر رفتار مدیران و بی‌کفایتی‌های آنان است و همچنین دارای اثرهای متقاضی بر انگیزه‌های مدیریت در خصوص دستکاری سود و به نوعی مدیریت سودهای گزارش شده باشد. هدف این پژوهش، بررسی نقش ساختار مالکیت بر ارتباط بین ساختارهای رقابتی بازار محصولو مدیریت واقعی سود در بورس اوراق بهادار تهرا...
متن کاملTHE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL Competition, Innovation and Growth in Transition: Exploring the Interactions between Policies
Transition has entailed the introduction of policies to stimulate product market competition, to establish effective corporate governance and to harden enterprise budget constraints. How do these policies interact? Are they substitute policy instruments or does one policy reinforce the effect of another? Although early endogenous growth models predicted a negative relationship between competiti...
متن کاملStudy on effects of industry competition in the product market on earnings management of listed companies in stock exchange
Earnings management has inverted the main objective of financial reporting through the distortion of the actual economic performance of companies and prevented the complete transfer of information to market. Given the importance of subject of research, incentives that cause earnings management have been reviewed from various aspects. The main purpose of this research is to examine the relations...
متن کاملMonopolistic Competition, Managerial Compensation, and the Distribution of Firms in General Equilibrium
We develop a general equilibrium model to show how the distribution of matches of heterogeneous quality between rms and managers, asymmetric information stemming from moral hazard, and monopolistic competition in the product market interact to a¤ect the distributions of rms and managerial compensation. We exploit the properties of the unique, stationary general equilibrium of the model to der...
متن کاملPrice Competition Between Two Leader-Follower Supply Chains, A Case Study
We model a real-world case problem as a price competition model between two leader-follower supply chains that each of them consists of one manufacturer and one retailer. T he manufacturer produces partially differentiated products and sells to market through his retailer. The retailer sells the products of manufacturer to market by adding some values to the product and gains margin as a fracti...
متن کامل