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We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios...
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How to design audit mechanisms that harness the benefits of self-reporting for achieving compliance with regulatory … focus is on the compliance of emission levels with regulatory targets, going beyond existing results on truthfulness of … competitive audit mechanism can leverage peer information for compliance: emission levels are closer to the social optimum. Yet …
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We experimentally investigate simultaneous decision-making in two contrasting environments: one that encourages competition (lottery contest) and one that encourages cooperation (public good game). We find that simultaneous participation in the public good game affects behavior in the contest,...
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Two aspects of social context are central to the finance industry: (i) financial professionals make investment decisions for customers and (ii) social competition/rankings are a pervasive feature. We link both lines of literature to investigate professionals' risk-taking behavior when investing...
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