A Process Model of Shaming Sanctions on Corporate Fraudulence in Transition Economies

Abstract

We examine how shaming sanctions mitigate corporate fraudulence by publicly listed firms in transition economies. We develop a process model exploring the interplay among institutions in transition economies, corporate fraud, and public shaming by focusing on the arbiter (stock exchange), the transmitters (media), the offender (fraud firm), and its social peers (business partners and other listed firms in the stock exchange). By outlining the shaming processes and outcomes, this paper sheds light on shaming sanctions in transition economies.