Managerial Discretion

T. V. S. Ramamohan Rao ()
Additional contact information
T. V. S. Ramamohan Rao: Indian Institute of Technology Kanpur

Chapter Chapter 2 in Managerial Discretion in Imperfect Markets, 2023, pp 21-37 from Springer

Abstract: Abstract Every decision of the management involves some choice. Managerial discretion cannot be described by saying that the management made one choice rather than another. In general, there will be one choice that provides the maximum gain (to the division or the market value of the firm whichever is applicable) and another choice that results in the least gain. If the choice of the management results in a gain between these limits the difference between the maximum and the realized gain constitutes the appropriate measure of managerial discretion. It would generally be useful to identify the motive for the actual decision made. Several measures of managerial discretion are a result of the variety of possible motives. The possibilities are outlined. Some changes in organizational culture and control have been suggested to reign in managerial discretion. However, it is unrealistic to expect that managerial discretion can be eliminated altogether.

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-1537-8_2

Ordering information: This item can be ordered from
http://www.springer.com/9789819915378

DOI: 10.1007/978-981-99-1537-8_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().