
This paper studies the information transmission aspect of influence activities within an organization where privately informed division managers strategically communicate divisional information to headquarters to influence its capital allocation decisions. Although costly, influence activities can play a role in transmitting valuable information to headquarters. We define influence activities to be informative if they improve headquarters's inference and detrimental if they hamper it. We find that influence activities are more likely to be informative in organizations that are less averse to risk taking, that rely more on higher-power incentives, and that encourage competition in the form of contest. We also find that competition over scarce resources increases the overall level of influence activities.
Influence activities, information transmission, jel: jel:L22, jel: jel:C72, jel: jel:D82, jel: jel:D23
Influence activities, information transmission, jel: jel:L22, jel: jel:C72, jel: jel:D82, jel: jel:D23
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 0 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
