Information Flows, Organizational Structure, and Corporate Governance

48 Pages Posted: 11 Aug 2022 Last revised: 15 Aug 2022

See all articles by Nadya Malenko

Nadya Malenko

University of Michigan, Stephen M. Ross School of Business; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Date Written: August 2, 2022

Abstract

This survey provides an overview of theoretical and empirical research on information flows in corporations. It highlights key frictions preventing effective information flows and discusses how organizational structure and corporate governance can alleviate these frictions, focusing on three broad topics: 1) organizational design, such as the choice between centralized and decentralized decision-making; 2) composition and decision-making process of the board of directors; and 3) communication among shareholders and between shareholders and management in the context of shareholder activism. The goal of the survey is to draw connections between theoretical and empirical work and point out directions for future research.

Keywords: information flows, communication, organizational design, corporate governance, allocation of authority, centralized decision-making, delegation, board of directors, shareholder activism

JEL Classification: D23, D82, D83, G34, L22

Suggested Citation

Malenko, Nadya, Information Flows, Organizational Structure, and Corporate Governance (August 2, 2022). Available at SSRN: https://ssrn.com/abstract=4179752 or http://dx.doi.org/10.2139/ssrn.4179752

Nadya Malenko (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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