Economics at your fingertips  

Managerial Accountability Under Yardstick Competition

Michele Giuranno (), Marcella Scrimitore () and Giorgos Stamatopoulos ()

The B.E. Journal of Theoretical Economics, 2020, vol. 20, issue 2, 4

Abstract: Two well-known mechanisms for enhancing managers’ accountability are yardstick competition and internal monitoring. Yardstick competition puts managers in direct competition when firms make decisions for re-appointment. Monitoring is used by firms to detect managers’ rent-seeking activities. While common wisdom suggests that the joint use of the two means would reinforce each other in promoting managers good practices, we find that their interplay distorts managers’ behavior who may end up acting in a less accountable way. Furthermore, differences in monitoring across firms bias that distortion, yielding even more counterintuitive results.

Keywords: Tullock context success function; rent seeking; managerial discretion (search for similar items in EconPapers)
JEL-codes: D D2 D7 M2 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Managerial accountability under yardstick competition (2019) Downloads
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2023-01-20
Handle: RePEc:bpj:bejtec:v:20:y:2020:i:2:p:4:n:9