【2016年9月29日】文献分享：Information Production and Capital Allocation: Decentralized versus Hierarchical Firms

金融学院青年学者论坛第十期

报告题目：Information Production and Capital Allocation: Decentralized versus Hierarchical Firms

报告人：蔡晓慧

报告时间：2016年9月29日（周四）下午2:00-3:30

报告地点：金融学院（3号楼）422会议室

主办单位：金融学院

Information Production and Capital Allocation: Decentralized versus Hierarchical Firms

JEREMY C. STEIN*

ABSTRACT

This paper asks how well different organizational structures perform in terms of generating information about investment projects and allocating capital to these projects. A decentralized approach—with small, single-manager firms—is most likely to be attractive when information about projects is “soft” and cannot be credibly transmitted. In contrast, large hierarchies perform better when information can be costlessly “hardened” and passed along inside the firm. The model can be used to think about the consequences of consolidation in the banking industry, particularly the documented tendency for mergers to lead to declines in small-business lending.