Titel: On the efficiency of hurdle rate based coordination mechanisms

Financial resources are scarce, which is why corporate capital budgeting needs to employ efficient allocation mechanisms. This paper conceptually transforms the idea behind a hurdle rate based coordination mechanism from an agency model into a computational model of a multi-divisional corporation with both heterogeneous departments and heterogeneous investment opportunities competing for the same source of funding. On the basis of our results, we reason that for heterogeneous investment opportunities a recurrent use of a hurdle rate based coordination mechanism can work efficiently only if intra-organizational communication is assumed to be absent. We show that, if only a single investment opportunity can be carried into execution due to scarce financial resources, the heterogeneity of the competing investment opportunities positively affects the departments' payoffs, while the number of proposed investment projects negatively impacts departmental utilities derived from a residual income. The latter is why our results support the assumption that an emergence of cooperation is to be expected as soon as departments can establish interdepartmental communication, rendering a hurdle rate based coordination mechanism inefficient. 

Publikationstyp: Beitrag in Zeitschrift (Autorenschaft)
Art der Veröffentlichung Online Publikation
Erschienen in: Mathematical and Computer Modelling of Dynamical Systems
Mathematical and Computer Modelling of Dynamical Systems
zur Publikation
 ( Routledge/Taylor & Francis Group; )
Erscheinungsdatum: 01.11.2014
Titel der Serie: -
Bandnummer: -
Heftnummer: -
Erstveröffentlichung: Ja
Version: -
Seite: S. 1 - 17
Gesamtseitenanzahl: 17 S.


ISSN: 1744-5051
AC-Nummer: -
Open Access
  • Kein Open-Access


Organisation Adresse
Fakultät für Wirtschaftswissenschaften
Institut für Unternehmensführung
Abteilung für Controlling und Strategische Unternehmensführung
Universitätsstrasse 67
9020 Klagenfurt
zur Organisation
Universitätsstrasse 67
AT - 9020  Klagenfurt


  • 101015 - Operations Research
  • 102009 - Computersimulation
  • 502052 - Betriebswirtschaftslehre
  • 502006 - Controlling
  • 502044 - Unternehmensführung
  • Selbstorganisierende Systeme
  • Unternehmertum
  • Science Citation Index Expanded (SCI Expanded)
Informationen zum Zitationsindex: Master Journal List
Peer Reviewed
  • Ja
  • Science to Science (Qualitätsindikator: I)
Klassifikationsraster der zugeordneten Organisationseinheiten:
Arbeitsgruppen Keine Arbeitsgruppe ausgewählt


Keine Partnerorganisation ausgewählt

Beiträge der Publikation

Keine verknüpften Publikationen vorhanden