Corporate Rent-Seeking and the managerial soft-budget constraint

Rodolfo Apreda

No 283, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: This paper seeks to expand on two topical strands in Government Finance and Political Science literature, rent-seeking and the soft-budget constraint, so as to bring forth a strong linkage with corporate governance environments. It will attempt to accomplish this task by setting up a distinctive framework of analysis that hinges on incremental cash flows. Firstly, it claims that both rent-seeking behavior and the soft-budget constraint are worthy of being applied to corporate governance learning and practice. Secondly, the paper contributes to focus on cash-flows reliability and managers’ accountability. Thirdly, it is shown how conflicts of interest underlie rent-seeking behavior, and how the latter relates to the soft-budget constraint.

Keywords: Rent-Seeking; Soft-Budget Constraint; Corporate Governance; Incremental Cash Flow model; Conflicts of Interest. (search for similar items in EconPapers)
JEL-codes: D72 D74 D82 G30 G34 (search for similar items in EconPapers)
Date: 2004-12
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-fin, nep-mic and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.ucema.edu.ar/publicaciones/download/documentos/283.pdf (application/pdf)

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:cem:doctra:283

Access Statistics for this paper

More papers in CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA Contact information at EDIRC.
Bibliographic data for series maintained by Valeria Dowding ().