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Product Market Competition, Incentives and Fraudulent Behavior

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  • R. Andergassen

Abstract

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.

Suggested Citation

  • R. Andergassen, 2008. "Product Market Competition, Incentives and Fraudulent Behavior," Working Papers 638, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:638
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    1. Keith J. Crocker & Joel Slemrod, 2007. "The economics of earnings manipulation and managerial compensation," RAND Journal of Economics, RAND Corporation, vol. 38(3), pages 698-713, September.
    2. Simi Kedia & Thomas Philippon, 2009. "The Economics of Fraudulent Accounting," Review of Financial Studies, Society for Financial Studies, vol. 22(6), pages 2169-2199, June.
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    10. 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.
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    Cited by:

    1. Loyola, Gino & Portilla, Yolanda, 2020. "Managerial compensation as a double-edged sword: Optimal incentives under misreporting," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 994-1017.
    2. Rainer Andergassen, 2015. "Product market competition and fraud in a model of price competition with horizontally differentiated products," Economics Bulletin, AccessEcon, vol. 35(3), pages 1669-1674.
    3. Daniel Herold, 2017. "The Impact of Incentive Pay on Corporate Crime," MAGKS Papers on Economics 201752, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Andergassen, Rainer, 2016. "Managerial compensation, product market competition and fraud," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 1-15.

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