Showing 1 - 8 of 8
Conventional wisdom suggests that partner identification disclosure can improve audit quality, because it may enhance transparency and individual accountability. Building on a two-period assignment model, we show that under certain conditions, the disclosure can distort partner client assignment...
Persistent link: https://www.econbiz.de/10012848157
We study optimal team design. In our model, a principal assigns either heterogeneous agents to a team (a diverse team) or homogenous agents to a team (a specialized team) to perform repeated team production. We assume that specialized teams exhibit a productive substitutability (e.g.,...
Persistent link: https://www.econbiz.de/10012849986
Following large-scale auditor consolidations in the late 1980s and early 1990s, along with Arthur Andersen's collapse in 2001, the global audit market has become highly concentrated during the past 30 years. Many interested parties, including regulators, researchers, and practitioners, disagree...
Persistent link: https://www.econbiz.de/10012901730
We propose a two-period matching model of firms and managers to argue that managerial career concerns may not guarantee assortative matching in the market for reputation. In the model, firms compete for managerial talent, and managers are concerned about their reputations. The market updates...
Persistent link: https://www.econbiz.de/10012901814
We examine the impact of social capital in local communities on corporate disclosure of proprietary information. Firms located in communities with higher social capital care more about the collective interests of the local communities. While the disclosure of proprietary information has the...
Persistent link: https://www.econbiz.de/10012894425
We study a contract design problem between a principal and a team of two productively heterogenous agents who can mutually monitor each other’s actions over an infinite horizon. The principal designs the explicit contract to set the stage for the agents to use implicit contracts to motivate...
Persistent link: https://www.econbiz.de/10014357376
Persistent link: https://www.econbiz.de/10014380495
We study optimal team design (homogenous vs. diverse assignment) and explicit contracting in a setting with multiple agents who have possibly diverse demographic characteristics captured by their discount factors. When the agents have relatively small discount factors, the contract is designed...
Persistent link: https://www.econbiz.de/10014355105