This study investigates how relative performance information (RPI) and peers' rule-breaking affect an employee's own rule-breaking in both the absence and presence of weak formal controls. We vary the presence of RPI (absent vs. present), the level of peers' rule-breaking (low vs. high), and the...

We examine whether the introduction of international accounting standards by German companies has improved the accuracy of analysts' forecasts, and what role changes in the quality of disclosures have played in this process. We develop a structural equation model that allows us to separate the...

Corporations have recently started incorporating employees' prosocial preferences into their incentive schemes, including charitable donations (corporate giving). These donations are mainly discussed in conjunction with the external effects of a firm's CSR strategy. However, this experiment...

This study investigates how tone at the top, implemented by top management, and tone at the bottom, in an employee’s immediate work environment, determine noncompliance. We focus on the disallowed actions of employees that improve their own and, in turn, the company’s performance, referred...

Since the late 1980s, the Financial Accounting Standards Board has implemented several new fair value accounting rules that have resulted in unrealized fair value gains or losses in net income. However, accrual-based earnings management models such as the Modified Jones Model (MJM) of Dechow,...

Does corporate compliance help to reduce firm risk? We explore this question by examining the reported compliance activities of 150 publicly listed German firms over the years 2014 to 2018. We build a summary score that accounts for 24 clearly identifiable compliance elements and find that...