During the US Internet bubble (1995-2001), several top executives dismissed both the law and ethical norms transferring large chunks of company wealth into their own hands. This paper investigates the key economic factors that brought about the proliferation of dishonest managerial behaviour, focussing on the weak internal control, perverse incentives related to managers' compensation schemes and conflicts of interest in the banking and auditing sectors. In order to prevent further abuses, the US administration imposed several regulatory changes, mainly through the Sarbanes- Oxley Act of 2002; we argue why some of its provisions might be taken one step further.
Becker, G. S. (1976): Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology. Journal of Economic Literature, 14(3): 817-826.
'Altruism, Egoism, and Genetic Fitness: Economics and Sociobiology' () 14Journal of Economic Literature: 817-826.
Altruism, Egoism, and Genetic Fitness: Economics and SociobiologyJournal of Economic Literature14817826)| false