Jensel and Meckling (1992, 1995)suggest that decentralisation of a firm is determined byknowledge transter costs and control costs. Knowledge transfer costs are higher whendecisions must be made on the basis of idiosyncratic knowledge scientific knowledge orassembled knowledge. Control costs are...

This study examines whether profit-sharing arrangements within accounting firms are associated with the riskiness of their client portfolios. Our results use unique data about the profit-sharing arrangements of the Big 8 firms during the period 1985 to 1994. We investigate whether there is a...