CRC-TRR 266/1: Transparency Effects of Organizational Innovations (SP A02)

Organizational design is an important determinant of firm transparency. Kourouxous and Schöttner focus on recent organizational innovations that affect the workspace of firms. Many of these innovations endow lower-level employees with more responsibility for the coordination of work. Consequently, more production-relevant information is allocated to these employees, while higher-level decision-makers experience a reduction of transparency. The project will systematically explore the consequences of these organizational phenomena on transparency within and between firms by factoring in the endogenous adjustment of managerial performance reporting, incentivization regimes and the firm’s tax environment.