Why cartel participation leads to financial statement fraud and market abuse
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| Názov: | Why cartel participation leads to financial statement fraud and market abuse |
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| Autori: | Huric Larsen, Jesper |
| Zdroj: | European Competition Journal. 21(1):125-139 |
| Predmety: | Cartels, financial statement fraud, market abuse, Economics, Nationalekonomi, Rättsvetenskap, Law |
| Popis: | In an attempt to hide from the competition authorities colluding firms risk committing financial statement fraud and market abuse. When colluding managers set the conditions for their cartel, the resulting increase in profitability and ability to pay outstanding debt enables the firms to attract more investors and access larger loans at a lower interest rate. The natural reluctance to disclose the firm’s cartel participation creates financial reports with misleading content, increases the likelihood of insider dealing and the ability to attract more funds diverts needed capital from otherwise more eligible firms, and endangers the financial markets' integrity and efficient functioning. The conclusion is that firms and individuals involved in cartel offenses should be investigated for financial statement fraud and market abuse. However, when persons may be subject to criminal sanctions it will decrease the attractiveness for individuals to use the leniency framework. |
| Popis súboru: | electronic |
| Prístupová URL adresa: | https://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-101157 https://doi.org/10.1080/17441056.2024.2379141 |
| Databáza: | SwePub |
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Nájsť tento článok vo Web of Science | Abstrakt: | In an attempt to hide from the competition authorities colluding firms risk committing financial statement fraud and market abuse. When colluding managers set the conditions for their cartel, the resulting increase in profitability and ability to pay outstanding debt enables the firms to attract more investors and access larger loans at a lower interest rate. The natural reluctance to disclose the firm’s cartel participation creates financial reports with misleading content, increases the likelihood of insider dealing and the ability to attract more funds diverts needed capital from otherwise more eligible firms, and endangers the financial markets' integrity and efficient functioning. The conclusion is that firms and individuals involved in cartel offenses should be investigated for financial statement fraud and market abuse. However, when persons may be subject to criminal sanctions it will decrease the attractiveness for individuals to use the leniency framework. |
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| ISSN: | 17441056 17578396 |
| DOI: | 10.1080/17441056.2024.2379141 |