Oliver Marnet is a Lecturer at the University of Exeter Business School.

• 1. Introduction 2. Overview of Corporate Governance 3. Earnings Management 4. Rationality or Rational Behaviour? 5. Behaviour and Rationality in Corporate Governance 6. Independence of Auditors and Directors 7. Recent Corporate Governance Failures 8. Implications for Governance Policy 9. Conclusion

‘Marnet provides a rich overview of important issues related to the role of external auditors and board members in corporate governance. Throughout the book, Marnet provides a strong empirical foundation for his arguments. The broad literature review and its application to prominent fraud scandals, the Asian Financial Crisis of 1997/1998 and the failure of Germany's Neuer Markt provide interesting directions for young researchers, regulators, and the key players of corporate governance. The book may be used as a supplementary reference in a corporate governance course for Masters or PhD students or as a rich source of inspiration for behavioral corporate governance researchers. The book is a pleasure to read and despite the rapid growth of literature on judgment and decision-making, it raises many issues that remain relevant for our understanding and the improvement of corporate governance.’ – Florian Hoos, HEC Paris, Jouy-en-Josas, France