Increasing Firm Value Through Detection and Prevention of White-Collar Crime

Karen Schnatterly

Chapter 78 in Handbook of Top Management Teams, 2010, pp 674-681 from Palgrave Macmillan

Abstract: Abstract White-collar crime can cost a company from 1 per cent to 6 per cent of annual sales, yet little is known about the organisational conditions that can reduce this cost. I find that the role of block holders, boards of directors or CEO compensation have little impact on fraud occurrence. Instead, operational governance, including clarity of policies and procedures, formal cross-company communication and performance-based pay for both the board and employees, significantly reduces the likelihood of a crime being committed.

Keywords: Governance Mechanism; Audit Committee; Corporate Crime; Crime Commission; Psychological Ownership (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-30533-5_79

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DOI: 10.1057/9780230305335_79

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