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What external control mechanisms are most effective in detecting corporate fraud? To address this question we study in … depth all reported cases of corporate fraud in companies with more than 750 million dollars in assets between 1996 and 2004 …. We find that fraud detection does not rely on one single mechanism, but on a wide range of, often improbable, actors …
Persistent link: https://www.econbiz.de/10012760394
Markets with asymmetric information will often employ third-party certification labels to distinguish between higher and lower quality transactions, yet little is known about the effects of certification policies on the evolution of markets. How does the stringency in quality certification...
Persistent link: https://www.econbiz.de/10012912526
firm invests, and the market shuts down. Learning introduces reputation incentives such that a fraction of entrants do … invest. If the market operates with spot prices, simple regulation can enhance the role of reputation to induce investment …
Persistent link: https://www.econbiz.de/10013109447
which firms slant their reports toward the prior beliefs of their customers in order to build a reputation for quality. Bias …
Persistent link: https://www.econbiz.de/10012784236
While a business's reputation can affect its pricing, prices can also affect its reputation. To explore the effect of … prices on reputation, we investigate daily data on menu prices and online ratings from a large rating and ordering platform …
Persistent link: https://www.econbiz.de/10014095818
This paper offers some observations on employee crime, economic theories of crime, limits on bonding, and the efficiency wage hypothesis. We demonstrate that the simplest economic theories of crime predict that profit-maximizing firms should follow strategies of minimal monitoring and large...
Persistent link: https://www.econbiz.de/10013311844
This paper reports on the results of a prospective implementation of methods for detecting teacher cheating. In Spring 2002, over 100 Chicago Public Schools elementary classrooms were selected for retesting based on the cheating detection algorithm. Classrooms prospectively identified as likely...
Persistent link: https://www.econbiz.de/10013237920
of the asset to fraud, on the frequency of trade, and on the current and future prices of the asset. In equilibrium, the …
Persistent link: https://www.econbiz.de/10013119606
. This citation penalty is more severe when the associated retracted article involves fraud or misconduct, relative to cases … spillovers. The evidence is consistent with the view that scientists avoid retraction-afflicted fields lest their own reputation …
Persistent link: https://www.econbiz.de/10013065177
In fighting a financial crisis, opacity (keeping the names of banks borrowing at emergency lending facilities secret) and stigma (the cost of having a bank's name revealed) are desirable to restore confidence. Lending facilities raise the perceived average quality of all banks' assets. Opacity...
Persistent link: https://www.econbiz.de/10012980183