The Value of Private Pre-Decision Information in a Principal-Agent Context.

Puntos clave

• The study aims to analyze how principals can influence agents' access to private information for better decision-making.
• Utilized a principal-agent model to assess the dynamics of information transfer.
• Examined the role of management accounting systems in supporting decision-making.
• Evaluated conditions that enhance agents' access to pre-decision information.
• Found that improved pre-decision information leads to better decision outcomes for agents.
• Indicated that management accounting systems play a crucial role in providing necessary information.
• Revealed conditions under which information flow can be optimized for better agent performance.