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Corporate Conflicts of Interest

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  • Joel S. Demski

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.

Suggested Citation

  • Joel S. Demski, 2003. "Corporate Conflicts of Interest," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 51-72, Spring.
    • Handle: RePEc:aea:jecper:v:17:y:2003:i:2:p:51-72
    Note: DOI: 10.1257/089533003765888421
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/089533003765888421
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    Cited by:

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    5. Ugo Albertazzi, 2006. "Incentives in universal banks," Temi di discussione (Economic working papers) 572, Bank of Italy, Economic Research and International Relations Area.
    6. Joel S. Demski & Hans Frimor & David E. M. Sappington, 2004. "Efficient Manipulation in a Repeated Setting," Journal of Accounting Research, Wiley Blackwell, vol. 42(1), pages 31-49, March.
    7. Bryan K. Church & Xi (Jason) Kuang, 2009. "Conflicts of Interest, Disclosure, and (Costly) Sanctions: Experimental Evidence," The Journal of Legal Studies, University of Chicago Press, vol. 38(2), pages 505-532, June.
    8. Besancenot, Damien & Vranceanu, Radu, 2004. "The Information Limit to Honest Managerial Behavior," ESSEC Working Papers DR 04008, ESSEC Research Center, ESSEC Business School.
    9. Samir El-Gazzar & Kwang-Hyun Chung & Rudolph Jacob, 2011. "Reporting of Internal Control Weaknesses and Debt Rating Changes," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 421-435, November.
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    12. Çule, Monika & Fulton, Murray, 2009. "Business culture and tax evasion: Why corruption and the unofficial economy can persist," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 811-822, December.
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    14. James K. Self, 2006. "Asymmetric Stationarity in National Stock Market Indices: An MTAR Analysis," The Journal of Business, University of Chicago Press, vol. 79(6), pages 3153-3174, November.
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    16. repec:kap:iaecre:v:17:y:2011:i:4:p:421-435 is not listed on IDEAS
    17. Tasawar Nawaz, 2019. "Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks," Journal of Business Ethics, Springer, vol. 157(2), pages 567-587, June.
    18. Francesco Giuli & Marco Manzo, 2005. "Protecting Savings: Do We Need a Supervision Authority?," Working Papers in Public Economics 84, University of Rome La Sapienza, Department of Economics and Law.
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    20. Sah, Sunita & Loewenstein, George, 2015. "Conflicted advice and second opinions: Benefits, but unintended consequences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 89-107.
    21. Lucas C. Coffman & Alexander Gotthard-Real, 2019. "Moral Perceptions of Advised Actions," Management Science, INFORMS, vol. 65(8), pages 3904-3927, August.
    22. Feng Yang & Tingwei Chen & Zongbin Zhang & Kan Yao, 2024. "Firm ESG Performance and Supply-Chain Total-Factor Productivity," Sustainability, MDPI, vol. 16(20), pages 1-19, October.
    23. Rodolfo Apreda, 2012. "A clinical approach to the governance of conflict-systems," CEMA Working Papers: Serie Documentos de Trabajo. 491, Universidad del CEMA.
    24. Demirović Lejla & Isaković-Kaplan Ševala & Proho Mahir, 2021. "Internal Audit Risk Assessment in the Function of Fraud Detection," Journal of Forensic Accounting Profession, Sciendo, vol. 1(1), pages 35-49, June.
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