Please join the College of Liberal Arts for the University Forum Lecture entitled, "Does Reputation Help to Control Corporate Misconduct?" a talk by Jonathan M. Karpoff, professor of finance, University of Washington.
Professor Karpoff discusses the cost of opportunistic activities that undermine a firm’s reputation. Arguing that trust (favorable reputation) reduces the costs of trade, he shows that market forces impose large, often irreversible, costs on both the perpetrators and firms involved in deceptive practices such as accounting misrepresentation and fraud. These market penalties typically dwarf the penalties imposed by regulators.