Title: Delegation, Communication, and Firm Outcomes

Abstract: While a rich theoretical literature argues that organizational structure matters for outcomes in organizations, empirical evidence is scarce. We construct new data on internal communications and regulatory outcomes for the agency that approves environmental permits for firms in one state in India. We use an event study approach to analyze a delegation reform in which junior officers were given the authority to approve or reject applications from firms in certain industries. Delegation was followed, but partially, as junior officers were often bypassed entirely. Communication patterns within the regulator changed, and affected applications were more likely to be approved.