Information Transmission through Influence Activities

Chongwoo Choe and In-Uck Park

No 53-12, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: 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.

Keywords: Influence activities; information transmission (search for similar items in EconPapers)
JEL-codes: C72 D23 D82 L22 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-09
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.buseco.monash.edu.au/eco/research/paper ... ormationchoepark.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.buseco.monash.edu.au/eco/research/papers/2012/5312informationchoepark.pdf [301 Moved Permanently]--> https://www.monash.edu/business/ [301 Moved Permanently]--> https://www.monash.edu/business)

Related works:
Working Paper: Information Transmission Through Influence Activities (2017)
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:mos:moswps:2012-53

Ordering information: This working paper can be ordered from
https://www.monash.e ... esearch/publications

Access Statistics for this paper

More papers in Monash Economics Working Papers from Monash University, Department of Economics Department of Economics, Monash University, Victoria 3800, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Simon Angus ().