The Impacts of Managerial Autonomy on Firm Outcomes

• 成果类型: Article
• 署名作者: Kala, Namrata
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA19872
• 发表日期: 2024
• 页码: 1777-1800
• 关键词: state; privatization; enterprises; authority; MARKET; identification; performance; INFORMATION; incentives; REFORM

摘要

The allocation of decision-making power is a critical choice that organizations make to mitigate agency problems and information frictions. This paper investigates the role of delegation for organizations where the agency problem is both pervasive and has potentially high welfare consequences: state-owned enterprises (SOEs). I use a natural experiment in India to uncover the causal effects of granting SOE managers more autonomy over strategic decisions. Managers meaningfully exercise this autonomy, which results in greater value added, but also a reduced emphasis on outcomes valued by the government, such as a reduction in worker amenities (employee housing), and an increase in markups. Returns to autonomy are higher for firms with higher baseline incentive conflict.