From year to year, the surety bonds (insurance guarantees) are becoming a more and more popular form of securing receivables of business entities, which is caused by many economic and legal factors. Increasingly, an alternative to civil liability insurance or bills is usually required by law for...

This paper develops a model showing how the environmental liability regime and the precision of the disclosed environmental performance indicator (EPI) affect managers' incentives (1) to reduce actual pollution and (2) to manipulate the EPI. I assume a company with a separation of ownership and...

Many firms conduct 'environmental audits' to test compliance with a complex array of environmental regulations. Commentators suggest, however, that self-auditing is not as common as it should be, because firms fear that what they find will be used against them. This article analyzes...