SPECIFIC KNOWLEDGE AND DIVISIONAL PERFORMANCE MEASUREMENT

Michael C. Jensen () and William H. Meckling

Journal of Applied Corporate Finance, 1999, vol. 12, issue 2, pages 8-17

Abstract: This paper discusses five common divisional performance measurement methods-cost centers, revenue centers, profit centers, investment centers, and expense centers-and provides the beginnings of a theory that attempts to explain when each of these five methods is likely to be the most efficient. The central insight of the theory is that each of these methods offers an alternative way of aligning decision-making authority with valuable "specific knowledge" inside the organization. 1999 Morgan Stanley.

Date: 1999

Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1745-6622.1999.tb00004.x link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Specific Knowledge and Divisional Performance Measurement (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:jacrfn:v:12:y:1999:i:2:p:8-17

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1078-1196

Access Statistics for this article

Journal of Applied Corporate Finance is edited by Donald H. Chew

More articles in Journal of Applied Corporate Finance from Morgan Stanley
Series data maintained by Christopher F. Baum ().