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A Theory of Income Smoothing When Insiders Know More Than Outsiders

Acharya, Viral V; Lambrecht, Bart - C.E.P.R. Discussion Papers - 2012

We consider a setting in which insiders have information about income that outside shareholders do not, but property rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent with outsiders' expectations based on publicly...

Persistent link: https://www.econbiz.de/10011083832

Evaluation of the Risks of Collective Dominance in the Audit Industry in France

Billard, Olivier; Ivaldi, Marc; Mitraille, Sebastien - C.E.P.R. Discussion Papers - 2011

therefore not surprising that the competitive analysis of the audit market is a critical factor in regulating financial systems … collective dominance in the statutory audit market in France using the criteria set by Airtours case and, in particular, by … potentially detrimental to the economy as a whole as the audit industry may fail to provide the optimal level of financial …

Persistent link: https://www.econbiz.de/10009493555

Corporate Fraud, Governance and Auditing

Immordino, Giovanni; Pagano, Marco - C.E.P.R. Discussion Papers - 2008

We analyze corporate fraud in a model in which managers have superior information but are biased against liquidation, because of their private benefits from empire building. This may induce them to misreport information and even bribe auditors when liquidation would be value-increasing. To curb...

Persistent link: https://www.econbiz.de/10005792136

Leniency Policies and Illegal Transactions

Buccirossi, Paolo; Spagnolo, Giancarlo - C.E.P.R. Discussion Papers - 2005

We study the consequences of leniency - reduced legal sanctions for wrongdoers who spontaneously self-report to law enforcers - on sequential, bilateral, illegal transactions such as corruption, manager-auditor collusion, or drug deals. It is known that leniency helps to deter illegal...

Persistent link: https://www.econbiz.de/10005124229

Social Networks and Parental Behavior in the Intergenerational Transmission of Religion

Patacchini, Eleonora; Zenou, Yves - C.E.P.R. Discussion Papers - 2011

We analyze the intergenerational transmission of the strength of religion focusing on the interplay between family and peer effects. We develop a theoretical model suggesting that both peer quality and parental effort are of importance for the religious behavior of the children. We then bring...

Persistent link: https://www.econbiz.de/10009147399

Peer Effects in Education, Sport, and Screen Activities: Local Aggregate or Local Average?

Liu, Xiaodong; Patacchini, Eleonora; Zenou, Yves - C.E.P.R. Discussion Papers - 2011

We develop two different social network models with different economic foundations. In the local-aggregate model, it is the sum of friends' efforts in some activity that affects the utility of each individual while, in the local-average model, it is costly to deviate from the average effort of...

Persistent link: https://www.econbiz.de/10009205066

Explaining the Black/White Employment Gap: The Role of Weak Ties

Zenou, Yves - C.E.P.R. Discussion Papers - 2011

The aim of this paper is to provide a new mechanism based on social interactions explaining why minority workers have worse labor-market outcomes than majority workers. Building on Granovetter's idea that weak ties are superior to strong ties for providing support in getting a job, we develop a...

Persistent link: https://www.econbiz.de/10009322974

The Old Boy Network: Gender Differences in the Impact of Social Networks on Remuneration in Top Executive Jobs

Lalanne, Marie; Seabright, Paul - C.E.P.R. Discussion Papers - 2011

Using an original dataset describing the career history of some 16,000 senior executives and members of the non-executive board of US, UK, French and German companies, we investigate gender differences in the use of social networks and their impact on earnings. There is a large gender wage gap:...

Persistent link: https://www.econbiz.de/10009351518

Bend It Like Beckham: Ethnic Identity and Integration

Bisin, Alberto; Patacchini, Eleonora; Verdier, Thierry; … - C.E.P.R. Discussion Papers - 2010

We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes which have been proposed in the social sciences: cultural conformity and cultural distinction. Under cultural conformity, ethnic identity is reduced by...

Persistent link: https://www.econbiz.de/10008684685

From Assortative to Dissortative Networks: The Role of Capacity Constraints

König, Michael; Tessone, Claudio J.; Zenou, Yves - C.E.P.R. Discussion Papers - 2010

We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative...

Persistent link: https://www.econbiz.de/10008684691