Many law enforcement agencies reduce punishments for corporations that report their own offenses. My research shows that these self-reporting schemes may help deter crime within a certain range of leniency. But the level of leniency has a U-shaped relationship with the level of deterrence: As the severity of punishment decreases, the probability that a crime will occur ﬁrst decreases and then increases.
Direct and Indirect Punishments of Executives
The United States, the United Kingdom and other countries have strengthened corporate self-reporting programs to help them detect non-antitrust offenses such as securities fraud and foreign bribery as well as antitrust violations. … Read more