Whistleblowers on the board? The role of independent directors in cartel prosecutions

Campello, Murillo; Ferrés, Daniel; Ormazabal, Gaizka

dc.rights.license	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.contributor.author	Campello, Murillo
dc.contributor.author	Ferrés, Daniel
dc.contributor.author	Ormazabal, Gaizka
dc.date.accessioned	2022-04-22T18:39:48Z
dc.date.available	2022-04-22T18:39:48Z
dc.date.issued	2015	es
dc.identifier.uri	https://hdl.handle.net/20.500.12806/1342
dc.description.abstract	Stock market reactions to news of cartel prosecutions are muted when indicted firms have a highproportion of independent directors serving on their boards. This finding is robust to self-selectionand is more pronounced when those directors hold more outside directorships and have fewer stockoptions — when they have fewer economic ties to the indicted firms. Results are stronger whenindependent directors’ appointments were attributable to SOX, preceded the CEO’s appointment,or followed class action suits — when they have fewer direct ties to indicted CEOs. Independentdirectors serving on indicted firms are penalized by losing board seats and vote support across theirdirectorships in other firms. Moreover, firms with more independent directors are more likely tocooperate with antitrust authorities through leniency programs and to dismiss CEOs after cartel indictments. Our results show that cartel prosecution imposes significant personal costs onto inde-pendent directors and that they take actions to reduce those costs. Understanding these incentivesis key for antitrust authorities in designing strategies for cartel prosecution.	es
dc.format.extent	47 p.	es
dc.format.mimetype	application/pdf	es
dc.language	eng	es
dc.publisher	Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía	es
dc.relation.ispartof	Documentos de trabajo del Departamento de Economía	es
dc.rights	Abierto	es
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Cartel prosecution	es
dc.subject	Antitrust policy	es
dc.subject	Leniency programs	es
dc.subject	Independent directors	es
dc.subject	Reputational costs	es
dc.subject	Heckman selection test	es
dc.title	Whistleblowers on the board? The role of independent directors in cartel prosecutions	es
dc.type	Documento de trabajo	es
dc.contributor.filiacion	Campello, Murillo. Cornell University	es
dc.contributor.filiacion	Ferrés, Daniel. Universidad de Montevideo, Uruguay	es
dc.contributor.filiacion	Ormazabal, Gaizka. IESE Business School	es
dc.type.version	Publicada	es