Eric Abrahamson

Assessing Managerial Discretion Across Industries: A Multimethod Approach

Coauthor(s): Donald Hambrick. View Publication

Abstract:
Industries differ widely in how much managerial discretion, or latitude of action, they allow. This research contributes to the reliable and valid measurement of this important but hard-to-measure construct. We found that (1) a panel of academics showed very high consistency in rating managerial discretion in diverse industries, (2) a panel of security analysts agreed strongly with the academics, and (3) the panel ratings were highly related to archival indicators of discretion posited by Hambrick and Finkelstein.

Close Window