search query: @indexterm Effectiveness / total: 756
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| Author: | Hofmann, C. |
| Title: | Gestaltung von Erfolgsrechnungen zur Steuerung von Verantwortungsbereichen |
| Journal: | Zeitschrift für Betriebswirtschaft
2002 : NOV, VOL. 72:11, p. 1177-1205 |
| Index terms: | AGENCY THEORY MANAGEMENT EFFECTIVENESS DIVISIONALISED COMPANIES |
| Language: | ger |
| Abstract: | Based on the analysis of a principal/agent-relation, the paper considers incentive problems of the firm's divisional managers. The authors compare the efficiency of several performance measures such as divisional costs, divisional revenues, and two alternative procedures of aggregating the single performance measures to a divisional profit. Based on restrictions of the firm's accounting system, the traditional divisional profit simply sums up the divisional revenues and costs. On the other hand, determining a divisional profit for incentive pur poses the authors have to weight the performance measures based on their sensitivity and precision. The analysis shows that the incentive-focused divisional profit yields the highest expected return to the principal (original in German). |
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