This paper analyzes the potential of one-step transfer prices based on either variable or full costs for coordinating decentralized production and quality-improving investment decisions. Transfer prices based on variable costs fail to induce investments on the upstream stage. In contrast,...

Purpose: This paper aims to contribute to the understanding of the mechanisms that evolve during reputational scandals and lead to changes in industry regulation. It explores the processes by which a demand for external industry regulation evolves, also addressing the consequences of firms’...

Corporate scandals led to an increased interest in improving managers' compliance. To this end, companies implement compliance programs including codes of conduct, compliance training, and whistle-blowing as core elements. Previous research has focused on the impact of the mere existence of one...

Relations between society and business are increasingly characterized by the societal demand for compliance with ethical standards. Companies are held responsible for behavior of their employees, which increases the demand for effective internal governance. To assure compliance, many companies...