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We examine the influence of auditors on mitigating corporate fraud in China, which is known to have weak legal … regulatory enforcement actions against corporate fraud in the subsequent year. We show that this effect is moderated by the … governance mechanism to discourage executives with lower integrity in committing fraud. Our results have policy implications for …
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A detailed analysis of 49 firms subject to AAERs suggests that approximately one-quarter of the misstatements meet the legal standards of intent. In the remaining three quarters, the initial misstatement reflects an optimistic bias that is not necessarily intentional. Because of the bias,...
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benefits as measured by the market reaction to the misstatement announcement. Additionally, insiders at fraud firms sell more …
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company, classified as fraud or no fraud, affect multiple accounts (pervasive) and more than one year. Overall, our results …
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Bernie Madoff defrauded billions of dollars from his victims. The crime of fraud and the so called sin of greed have … been with us throughout known human history. Instead of looking at mere greed as the cause for fraud, this retrospective of … Bernie Madoff's fraud will examine the other reasons why, despite multiple warnings and red flags, smart savvy people who had …
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