Firms with more competitive threats from the product market are less likely to commit violations and pay lower penalties. These findings are robust to alternative measures, specifications, and subsamples, as well as different attempts that mitigate endogeneity concerns. Further analyses reveal...

We find strong evidence that when the customer base is more concentrated, the supplier firm's CEO receives more risk-taking incentives in compensation. This finding is robust to numerous alternative specifications and to different approaches that mitigate endogeneity concerns. Further, we show...

We examine whether economic links with major customers, an important group of strong stakeholders, act as a deterrent to corporate misconduct. We show that firms with a concentrated customer base are less likely to commit misconduct and face lower penalties. These findings hold with numerous...