Financial Architecture and Manager Dishonesty: Lessons from US Corporate Scandals
During the US Internet bubble (1995-2001), several top executives dismissed both the law and ethical norms transferring large chunks of company wealth into their own hands. This paper investigates the key economic factors that brought about the proliferation of dishonest managerial behaviour, focussing on the weak internal control, perverse incentives related to managers’ compensation schemes and conflicts of interest in the banking and auditing sectors.
VRANCEANU, R. (2005). Financial Architecture and Manager Dishonesty: Lessons from US Corporate Scandals. Acta Oeconomica, pp. 1-22.