Numerous collapses and corporate scandals of large corporations have underscored the impact of corporate conduct on capital markets and society as a whole. These failures have highlighted the need for regulators to rethink regulatory frameworks and enforcement, and for corporations to rework their organizational structures and focus on business ethics. Establishing a clear understanding of the drivers of corporate failure is therefore key. In this paper, we review recent research that extends the debate on the causes and consequence of corporate failures.
We are grateful to the Editors of the Journal of Corporate Finance, Sanjai Bhagat, Konstantinos Stathopoulos, Till Talaulicar, Omrane Guedhami, Florencio Lopez Di Silanes, Siri Terjesen, and the participants of the Special Issue Conference: Corporate Failure: Decline, Collapse and Scandal hosted by Florida Atlantic University, Boca Raton, Florida, USA for helpful comments and suggestions
- Financial market misconduct
- Law and finance