Fintech-based disclosure and incentives-effects misconduct as macrofinancial and international political economy leakages: sustainable growth and financial stability 1

Chapter 4 explains why earnings management, asset-quality management, incentive-effects management and illegal insider trading are types of “Leakages” (macroeconomic; International Political Economy; social) and can cause or increase economic recessions, Systemic risk and Financial Instability. The chapter explains and introduces testable hypothesis about some of the evolving and symbiotic relationships between macroeconomic factors on one hand, and earnings management and Incentive-Effects Management (including Standardized Contracts, asset securitization and some Structured Products Vehicles transactions).