Conflicts of Interest, Information Quality and Management Decision

Abstract

The existence of conflict of interests (COI) within different firms' level of management is often cited as the reason for the relationship for low information quality and ineffective decision making. We reveal how COI affects negatively decision making through low information quality longer time to produce information quality, shrinking optimal information quantity, and increasing in the information cost. Although, COI has been studied extensively by different organizational studies, there is no research showing how to measure the effect of COI on information quality from mathematical modeling perspective. Since effective and efficient management decisions closely depend on information quality, this paper provides the solutions to this problem.