Skip to main content

Please enter a keyword and click the arrow to search the site

Managerial Career Concerns and Project Cycle Time in Capital Budgeting

Subject

Finance

Publishing details

IFA Working Paper

Publication Year

1998

Abstract

We study a situation in which a manager, whose ability is unknown a priori, proposes a project for funding. The manager's superior can observe the information about quality generated by the manager, but cannot observe the resources devoted by the manager to generate that information. We show that a reputation-conscious manager will over invest in information about the project, relative what the firm's shareholders would like, and that this leads to an excessively long product-development cycle time. Possible organisational responses to this distortion are discussed and empirical implications drawn out.

Publication Research Centre

Institute of Finance and Accounting

Series Number

FIN 284

Series

IFA Working Paper

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.