McHardy, J.P. orcid.org/0000-0003-2441-7110, Dietrich, M. and Sharma, A. (2016) Firm Corruption in the Presence of an Auditor. Review of Economic Analysis, 8. pp. 97-124.
Abstract
We develop a theoretical framework exploring firm corruption accounting for interactions with an auditor who provides auditing and other services. A multiplicity of equilibria can exist including stable corruption and auditor controlled corruption. Whilst fining the auditor cannot eliminate all corruption, fining the firm can, but marginal increases in this fine can also have perverse effects. Investing in corruption detection may be effective in deterring auditor corruption but ineffective in deterring firm corruption. Policy effectiveness is highly dependent upon several factors which may be hard to observe in practice making general rules about policy interventions to address corruption very difficult.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2016 Michael Dietrich, Jolian McHardy and Abhijit Sharma. Licensed under the Creative Commons Attribution - Noncommercial 3.0 Licence (http://creativecommons.org/licenses/bync/3.0/. Available at http://rofea.org. |
Keywords: | firm corruption; auditor corruption |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 09 Mar 2017 15:05 |
Last Modified: | 23 Jun 2023 22:24 |
Published Version: | http://rofea.org/index.php?journal=journal&page=ar... |
Status: | Published |
Publisher: | Rimini Centre for Economic Analysis |
Refereed: | Yes |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:113088 |