We use a controlled laboratory setting to experimentally examine the role of auditing and market-based-governance in restraining managerial expropriation and inaccurate financial reporting. Managerial expropriation is broadly defined as the enabling of all actions that opportunistically transfer wealth from investors to managers through understatement of realizable income. Similarly, auditing i...

We develop simple models in which corporate governance affects the financing and the production level of firms. In this paper, better corporate governance implies governance under which a smaller firm value can be expropriated by the manager, ceteris paribus. We assume that the potential expropriation can occur after production. In the single firm model, we investigate how corporate governance ...

While scholars long recognized the importance of land markets as a key driver of rural non-farm development and transformation in rural areas, evidence on the extent of their operation and the nature of participants remains limited. We use household data from 6 countries to show that there is great potential for such markets to increase productivity and equalize factor ratios. While rental mark...

Opportunistic land encroachment, resulting from costly and incomplete enforcement of common land boundaries, is a problem in many less-developed countries. A multi-period model of such encroachment is presented in this paper. The model accounts explicitly for the cumulative effects of non-compliance of regulations designed to protect a finite, non-renewable resource – in this case common land –...