 A model of corporate self-policing and self-reportingMasaki Iwasaki International Review of Law and Economics, 2020, vol. 63, issue C Abstract: What are the effects of corporate self-reporting schemes on deterrence of corporate crime? This paper presents a model to analyze this question for the case in which a firm's manager, who has stock-based compensation, commits a corporate crime and the firm conducts self-policing and self-reporting. Corporate self-reporting schemes may enhance deterrence if the level of corporate leniency is within a certain range. But the level of corporate leniency has a non-monotonic relationship with deterrence in that range: as the level of corporate sanctions decreases, receding from the upper limit of the range, the probability of crime occurring first decreases and then increases. The paper also considers the case in which both individual and corporate self-reporting programs are introduced. The social desirability of individual self-reporting schemes depends on whether firms can commit to a certain level of self-policing efforts. Keywords: Corporate crime; Self-policing; Self-reporting; Deterrence (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:63:y:2020:i:c:s0144818819302534 DOI: 10.1016/j.irle.2020.105910 Access Statistics for this article International Review of Law and Economics is currently edited by C. Ott, A. W. Katz and H-B. Schäfer More articles in International Review of Law and Economics from Elsevier |
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