Inflating profits and industry competitiveness

Hamid Beladi, Sugata Marjit and Reza Oladi

International Journal of Economic Theory, 2019, vol. 15, issue 3, 281-287

Abstract: We provide a theoretical model in which managers inflate actual profits to attract capital and shareholders cannot monitor such actions. We focus on the role of market competition in cross‐industry difference in financial performance overstatement. We show that the degree of competition negatively affects the extent of overstatement.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ijet.12185

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:15:y:2019:i:3:p:281-287

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().