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Steuerung dezentraler Investitionsentscheidungen auf Basis eines modifizierten Residualgewinns

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Listed:
  • Stefan Dierkes

    (Universität Leipzig)

  • Stephanie Hanrath

    (Martin-Luther-Universität Halle-Wittenberg)

Abstract

Summary To control decentralized investment decisions about inelastic projects in case of asymmetric information and diverging interests among headquarters and division management it is recommended to give managers a share in residual income following the relative benefit approach. This article shows, that this performance measure fails in case of depreciation based on production units and is only partly suitable for elastic investment projects with depreciation based on time. The modified residual income, which calculates capital costs based on consumption, represents an alternative with advantages in both cases of depreciation.

Suggested Citation

  • Stefan Dierkes & Stephanie Hanrath, 2002. "Steuerung dezentraler Investitionsentscheidungen auf Basis eines modifizierten Residualgewinns," Schmalenbach Journal of Business Research, Springer, vol. 54(3), pages 246-267, May.
    • Handle: RePEc:spr:sjobre:v:54:y:2002:i:3:d:10.1007_bf03372678
    DOI: 10.1007/BF03372678
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    References listed on IDEAS

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    1. Rogerson, William P, 1997. "Intertemporal Cost Allocation and Managerial Investment Incentives: A Theory Explaining the Use of Economic Value Added as a Performance Measure," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 770-795, August.
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    Cited by:

    1. Stefan Dierkes, 2004. "Strategische Kostenanpassung oder relative Leistungsbewertung — Was ist besser?," Schmalenbach Journal of Business Research, Springer, vol. 56(1), pages 45-59, February.

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    More about this item

    Keywords

    M41; G31; D82;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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