when liquidation would be value-increasing. To curb fraud, shareholders optimally choose auditing quality and the …We analyze corporate fraud in a model in which managers have superior information but are biased against liquidation … performance sensitivity of managerial pay, taking external corporate governance and auditing regulation into account. For given …

-post auditing. Our results do not show significant effects of variations in random audit rates and switching to a conditional audit …

yielding equilibria exhibiting various degrees of inefficiencies and fraud. The variety of results has fostered the impression …

democracies. The incumbent can prevent credible challengers from running, organize vote fraud, or even physically eliminate the …