Corporate Conflicts of Interest
- 1 May 2003
- journal article
- Published by American Economic Association in Journal of Economic Perspectives
- Vol. 17 (2) , 51-72
- https://doi.org/10.1257/089533003765888421
Abstract
This paper surveys conflicts of interest in the corporate governance arena, with emphasis on auditors, boards of directors, analysts and investment bankers, regulators, management, attorneys and investors. Enron provides a host of examples as well. I stress the multifaceted nature of these conflicts, and the fact most research looks at some conflicts, such as auditor independence, absent the larger setting and potential interactions among various players. I further speculate herding behavior is an important explanatory device in understanding periodic failures.Keywords
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