Strategy

Delegation is a central feature of organizational design that theory suggests should be aligned with the intensity of incentives. We explore a specific form of delegation, namely price delegation, whereby firms allow sales people to offer a maximum discount from the list price to their customers. We develop a model of the price delegation decision based on information acquisition that relies on characteristics of our empirical context of industrial sales.

In recent years, online retailers (also called e-tailers) have started allowing manufacturers direct access to their customers while charging a fee for providing this access, a format commonly referred to as agency selling. In this paper, we use a stylized theoretical model to answer a key question that e-tailers are facing: When should they use an agency selling format instead of using the more conventional reselling format?

When a proxy contest is looming, the rate at which CEOs exercise options to sell (hold) the resulting shares slows down by 80% (accelerates by 60%), consistent with their desire to maintain or strengthen voting rights when facing challenges. Such deviations are closely aligned with features unique to proxy contests, such as the record dates and nomination status, and are more pronounced when the private benefits are higher or when the voting rights are more crucial.

This study examines the voting behavior of independent directors of public companies in China from 2004–2012. The unique data at the individual-director level overcome endogeneity in both board formation and proposal selection by allowing analysis based on within-board proposal variation. Career-conscious directors, measured by age and the director's reputation value, are more likely to dissent; dissension is eventually rewarded in the marketplace in the form of more outside directorships and a lower risk of regulatory sanctions.

Media concentration has been an issue around the world. To some observers the power of large corporations has never been higher. To others, the Internet has brought openness and diversity. What perspective is correct? The answer has significant implications for politics, business, culture, regulation, and innovation. It addresses a highly contentious subject of public debate in many countries around the world. In this discussion, one side fears the emergence of media empires that can sway public opinion and endanger democracy.

Following the financial crisis of 2008–2009, a large literature has emerged that attempts to quantify and measure systemic risk. In this paper we focus on some of the more popular systemic risk indicators from this literature and ask how well they work, in the following sense: At the aggregate level, what information above that which is readily observable in the market do we learn from these systemic risk indicators?

Improvisation is informing new models for strategy and organization design and determining how improvisation can create more productive interactions between individuals in an organization. Management research offers something to the study of improvisation in the form of evidence that groups that combine access to diverse ideas with internal cohesion are more creative and better able to develop those ideas into effective products and performances.