All information presented in financial statements must reflect accounting reality in order to satisfy the needs of many different users, among whom there may be conflicts of interest. Conflicts of interest, together with loopholes in accountancy law, room for maneuver in the creation of...

The aim of this paper is to bring into attention an interesting game of accounts manipulation and its playes. Their expectations represent the genesis point of manipulative behaviour and by understanding their actions and gains and losses we may create a link to undestanding the process of...

In principal-agent models with moral hazard and limited liability, the principal may threaten the agent with reputaion damages in case of poor performance. We show that such reputation threats, although inefficient, often help the principal to discipline the agent.