Managerial discretion, incentives and governance rules for non-profit organizations

Antonelli, Maria Alessandra (2003): Managerial discretion, incentives and governance rules for non-profit organizations. Published in: Journal of Public Finance and Public Choice , Vol. 21, No. 1 (2003): pp. 47-62.

Abstract

This paper analyzes the effects of managerial discretion and some possible solutions in non-profit sector. It is shown how the traditional incentives’ mechanisms are modified in a non-profit setting. In particular, market, reputational and ideological incentives are considered. The analysis highlights that new governance rules are necessary. In this context a new financial model is analyzed where the competition between for-profit and non-profit firms is extended from the products level to that of private financing.

• Item Type: MPRA Paper
• Language: English
• Keywords: non-profit; managerial discretion; incentives, governance rules
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L30 - General; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L31 - Nonprofit Institutions ; NGOs ; Social Entrepreneurship

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