Please use this identifier to cite or link to this item: https://repository.iimb.ac.in/handle/2074/14352
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dc.contributor.authorManukonda, Snigdha
dc.contributor.authorRamachandran, J
dc.date.accessioned2020-08-31T14:55:55Z-
dc.date.available2020-08-31T14:55:55Z-
dc.date.issued2016
dc.identifier.urihttps://repository.iimb.ac.in/handle/2074/14352-
dc.description.abstractThe need to allocate capital under uncertain conditions is likely to trigger cognitive simplification processes, making the capital allocation decisions error-prone. Improving efficiency of capital allocation amidst this uncertainty calls for cognitive repair. In this paper, we examine how ownership structure could serve as a cognitive repair mechanism and improve capital allocation by enabling organizations to tackle the inherent uncertainty of capital allocation amidst cognitive limitations of decision makers within the organization. In specific, we propose that relative ownership of institutional investors with respect to managers serves as a repair mechanism, provided neither corporate managers nor institutional investors have sufficient voting power to overrule the other. Our results confirm our thesis that when managers and institutional investors work together they tackle the inherent uncertainty of capital allocation better and allocate more efficiently.
dc.subjectOwnership
dc.subjectCapital allocation
dc.subjectInstitutional investors
dc.titleAllocating capital amidst perceived uncertainty: Relative (Not Absolute) ownership matters
dc.typePresentation
dc.relation.conferenceAcademy of Management Annual Meeting, 5-9 August, 2016, Anaheim, California, USA
Appears in Collections:2010-2019 P
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