Product market competition, incentives and fraudulent behavior
The present paper studies incentive provision in a model where a manager can affect the firm's stock price by exerting unobservable effort and through costly, deceptive signalling and investigates the role product market competition plays in shaping shareholders' trade-off between inducing effort and fraud.
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- Goldman, Eitan & Slezak, Steve L., 2006. "An equilibrium model of incentive contracts in the presence of information manipulation," Journal of Financial Economics, Elsevier, vol. 80(3), pages 603-626, June.
- Simi Kedia & Thomas Philippon, 2009.
"The Economics of Fraudulent Accounting,"
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- Burns, Natasha & Kedia, Simi, 2006. "The impact of performance-based compensation on misreporting," Journal of Financial Economics, Elsevier, vol. 79(1), pages 35-67, January.
- Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier.
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- Michael C. Jensen, 2003. "Paying People to Lie: the Truth about the Budgeting Process," European Financial Management, European Financial Management Association, vol. 9(3), pages 379-406.
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