Cultural and geographical distances create friction in multinational enterprises (MNEs), friction that indigenous firms do not experience in the same manner. This friction or liabilities of distance is conceptualized as governance costs in this chapter. Unfortunately, governance costs seem to be...

In an increasingly competitive global market, firms try to conquer a special place in customers’ minds and – when possible – in their hearts and spirits in order to succeed. Hence, through a competitive strategy based on differentiation, companies tend to focus their efforts in creating...

Commentators express concern that when auditors investigate for but fail to detect fraud, jurors might effectively penalize the auditors for having investigated for the fraud (AICPA, 2004; Coffee, 2004; Golden, Skalak, & Clayton, 2006). Consistent with these concerns, Reffett (2010) finds that, in a...

This chapter analyses efforts exerted and utilities obtained in a double lawsuit. This is a usual situation when insurance companies are involved in damage compensation. A victim files the first lawsuit against its insurance company for coverage. If the victim loses, there are no further...