Publications

2017
Working Paper

Does Financial Misconduct Affect the Future Compensation of Alumni Managers?

By: Boris Groysberg, Eric Lin and Georgios Serafeim

We explore how an organization’s financial misconduct may affect pay for former employees not implicated in wrongdoing. Drawing on stigma theory we hypothesize that although such alumni did not participate in the financial misconduct and they had left the organization... View Details

Keywords: Corporate Misconduct; Restatements; Stigma; Financial Misconduct; Compensation and Benefits; Crime and Corruption; Employees

SSRN

July 2020
Article

Does Corporate Misconduct Affect the Future Compensation of Alumni Managers?

By: Boris Groysberg, Eric Lin and George Serafeim

Using data from a top-five global executive placement firm, the authors explore how an organization's financial misconduct may affect pay for former employees not implicated in wrongdoing. Drawing on stigma theory, they hypothesize that although such alumni did not... View Details

Keywords: Corporate Misconduct; Financial Misconduct; Stigma; Crime and Corruption; Employees; Compensation and Benefits

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March 2020 (Revised February 2023)
Case

Political Legitimacy and Global Capital Markets: Malaysia's 1MDB (A)

By: Meg Rithmire and Courtney Han

In May 2018, Malaysia’s 14th General Election saw a change of power that many thought they would never witness in their lifetimes. The political party that had ruled Malaysia for 60 year was kicked out of office by a 92 year-old challenger, Mahathir Mohamed, who had... View Details

Keywords: Government Administration; Crime and Corruption; Financial Markets; Malaysia

April 2008 (Revised August 2008)
Supplement

Leading Citigroup (B)

By: Lynn S. Paine, Carin-Isabel Knoop and Aldo Sesia

The (B) case describes the actions taken by Citigroup CEO Chuck Prince and his management team to right the company in the wake of the controversies and alleged misdeeds described in the (A) case. View Details

Keywords: Crime and Corruption; Ethics; Corporate Governance; Governance Controls; Leadership; Management Teams; Organizational Culture

April 2018
Case

Globalizing Japan's Dream Machine: Recruit Holdings Co., Ltd.

By: Sandra J. Sucher and Shalene Gupta

Recruit Holdings, an advertising media, staffing, and business support conglomerate was founded in 1960 by Hiromasa Ezoe. Recruit was built on the principle that the company should add value to society. To do this, it hired young and talented employees and created a... View Details

Keywords: Business Conglomerates; Mission and Purpose; Organizational Culture; Crime and Corruption; Transition; Globalization; Japan

February 2019
Article

The Market for Financial Adviser Misconduct

By: Mark Egan, Gregor Matvos and Amit Seru

We construct a novel database containing the universe of financial advisers in the United States from 2005 to 2015, representing approximately 10% of employment of the finance and insurance sector. We provide the first large-scale study that documents the economy-wide... View Details

Keywords: Financial Advisors; Brokers; Consumer Finance; Financial Misconduct And Fraud; FINRA; Financial Institutions; Crime and Corruption; Organizational Culture; Personal Finance; Financial Services Industry

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2012
Mimeo

Françafrique and Oil

By: Noel Maurer

France's special relationship with its oil-producing former colonies has become entirely divorced from economic or strategic considerations. What drives the relationship, rather, are special interests: the French oil companies, the connections between African leaders... View Details

Keywords: Relationships; Economics; Strategy; Natural Environment; Interests; Crime and Corruption; Energy Industry; France; Gabon; Congo, Republic of the

December 1996 (Revised October 1999)
Case

Kidder, Peabody & Co.: Creating Elusive Profits

By: Robert L. Simons and Antonio Davila

On April 17, 1994, Kidder, Peabody & Co. announced a $350 million charge against earnings resulting from the discovery of false trading profits. That same day, the termination of Joseph Jett's employment with the company was made public. By illustrating the mechanics... View Details

Keywords: Bonds; Governance Controls; Crime and Corruption; Financial Reporting; Profit; Financial Strategy

January 2013
Supplement

Aubrey McClendon's Special Incentive Compensation at Chesapeake Energy (B)

By: Paul Healy, Clayton S. Rose and Penelope Rossano

Keywords: Stockholders; Activist Investors; Corruption; Conflict of Interests; Crime and Corruption; Executive Compensation; Energy Industry

December 1993 (Revised September 2003)
Supplement

Beech-Nut Nutrition Corporation (D)

By: Lynn S. Paine

Prosecutors in the U.S. Justice Department's Office of Consumer Litigation reflect on their case against the Beech-Nut Nutrition Corp. View Details

Keywords: Crime and Corruption; Lawsuits and Litigation; Management; Family Ownership; Cognition and Thinking; Food and Beverage Industry

2023
Book

Precarious Ties: Business and the State in Authoritarian Asia

By: Meg Rithmire

Developing Asia has been the site of some of the last century's fastest growing economies as well as some of the world's most durable authoritarian regimes. Many accounts of rapid growth alongside monopolies on political power have focused on crony relationships... View Details

Keywords: Business and Government Relations; Developing Countries and Economies; Economic Systems; Crime and Corruption; China; Indonesia; Malaysia

2011
Working Paper

Free to Punish? The American Dream and the Harsh Treatment of Criminals

By: Rafael Di Tella and Juan Dubra

We describe the evolution of selective aspects of punishment in the U.S. over the period 1980-2004. We note that imprisonment increased around 1980, a period that coincides with the "Reagan revolution" in economic matters. We build an economic model where beliefs about... View Details

Keywords: Crime and Corruption; Economy; Moral Sensibility; Mathematical Methods; Opportunities; Behavior; United States

September 2022
Article

Tone at the Bottom: Measuring Corporate Misconduct Risk from the Text of Employee Reviews

By: Dennis W. Campbell and Ruidi Shang

This paper examines whether information extracted via text-based statistical methods applied to employee reviews left on the website Glassdoor.com can be used to develop indicators of corporate misconduct risk. We argue that inside information on the incidence of... View Details

Keywords: Management Accounting; Management Control; Corporate Culture; Corporate Misconduct; Risk Measurement; Organizational Culture; Crime and Corruption; Risk and Uncertainty; Measurement and Metrics

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03 Jan 2018
What Do You Think?

In the Wake of #MeToo, Should Corporate Boards Hire Compliance Officers?

on-the-job misdeeds served the purpose nicely. Those supporting the idea of a corporate board's creating an independent officer of compliance, reporting directly to the board, cited the need for visible action in the face of growing challenges posed by everything from... View Details

Keywords: by James Heskett

2019
Article

The Frequency of Corporate Misconduct: Public Enforcement versus Private Reality

By: Eugene F. Soltes

Perceptions about the frequency of misconduct—among the public, academics and even regulators—have largely been formed by examining enforcement statistics, which rely on the detection and sanctioning of the misconduct. This study aims to illuminate the real occurrence... View Details

Keywords: Fraud; Bribery; Misconduct; Organizations; Crime and Corruption

summer 1997
Article

The New Economics of Corruption: A Survey and Some New Results

By: Alberto Ades and Rafael Di Tella

Keywords: Economics; Crime and Corruption

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April 2002 (Revised July 2002)
Case

eBay (B): Combating Fraud

By: Frances X. Frei and Hanna Rodriguez-Farrar

Supplements the (A) case. View Details

Keywords: Crime and Corruption; Management; Web Services Industry

Article

Does Financial Misconduct Affect the Future Compensation of Alumni Managers?

By: Boris Groysberg, Eric Lin and George Serafeim

We explore how an organization’s financial misconduct may affect pay for former employees not implicated in wrongdoing. Drawing on stigma theory we hypothesize that although such alumni did not participate in the financial misconduct, and they had left the organization... View Details

Keywords: Financial Misconduct; Stigma; Finance; Crime and Corruption; Executive Compensation; Employees; Compensation and Benefits