Authors : Anand, Abhinav and Dutta, Souvik and Mukherjee, Prithwiraj
Year : 2022
Abstract
We model a revenue sharing contract between a sharing economy platform and a freelance service provider, where the latter hides revenue from the former by canceling some assignments and performing them for cash (\platform exploitation"). The platform counters this via costly, imperfect audits with endogenous success probability, and a variable payment. We show that at equilibrium, all agent types except the highest, indulge in revenue falsification. This problem is exacerbated by the principal's ability to extract restitution from the agent.
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Authors : K, Aishwarya and Murthy, Shashidhar and Reddy, Vinod Veera
Year : 2022
Abstract
This paper empirically investigates a new measure of credit risk that we term as the Market price of default risk (MPDR), constructed usinginformation from the bond market, equity market and financial statements. Aggregation of the proposed measure across firms, studied over time,is shown to forecast Financial crisis of 2008 well before other measures of credit risk.
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Authors : Kushwaha, Narendra Nath and Anand, Abhinav and Jayadev, M and Raghunandan, Kannan Raghunandan
Year : 2022
Abstract
We examine the effect of related party transactions (RPTs) on audit fees in Indian public companies. RPTs can be used to manipulate financial statements as well as transfer wealth between firms and their related parties, and the presence of RPTs increases audit risk. We find that related party sales are associated with 17.4 percent increase in audit fees, indicating that such transactions increase the audit risk and require significant additional audit effort.
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