|
EconStor >
Rheinische Friedrich-Wilhelms-Universität Bonn >
Bonn Graduate School of Economics (BGSE), Universität Bonn >
Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/22852
|
| | |
| Title: | | The Benefit and Cost of Winner Picking: Redistribution Vs Incentives  |
| Authors: | | Gautier, Axel Heider, Florian |
| Issue Date: | | 2002 |
| Series/Report no.: | | Bonn econ discussion papers 2002,31 |
| Abstract: | | The Benefit and Cost of Winner Picking: Redistribution Vs Incentives BA multi-divisional firm can engage in "winner-picking" to redistribute scarce funds efficiently across divisions. But there is a conflict between rewarding winners (investing) and producing resources internally to reward winners (incentives). Managers in winning divisions are tempted to free-ride on resources produced by managers in loosing divisions whose incentives to produce resources, anticipating their loss, are also weakened. Corporate headquarter's investment and incentive policy are therefore inextricably linked and have to be treated as jointly endogenous. The analysis links corporate strategy, compensation and the value of diversification to the characteristics of multi-divisional firms. |
| Subjects: | | Conglomerate Internal capital market |
| JEL: | | G34 G31 L23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/22852
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|