What external control mechanisms are most effective in detecting corporate fraud? To address this question we study in … depth all reported cases of corporate fraud in companies with more than 750 million dollars in assets between 1996 and 2004 …. We find that fraud detection does not rely on one single mechanism, but on a wide range of, often improbable, actors …

legal record are more likely to perpetrate fraud. In contrast, we do not find a relation between executives' frugality and … the propensity to perpetrate fraud. However, as predicted, we find that unfrugal CEOs oversee a relatively loose control … environment characterized by relatively high probabilities of other insiders perpetrating fraud and unintentional material …

unusually low CEO turnover and rely on internal management promotions. Their managers exercise stock options faster than … managers of other firms. Cartel firms are large donors to political candidates. While our results are based only upon firms … engaged in price fixing, we expect that they should apply generally to all companies in which managers seek to conceal poor …

action securities fraud lawsuit …

misconduct correspond with local waves of non-financial corruption, such as political fraud …

of the asset to fraud, on the frequency of trade, and on the current and future prices of the asset. In equilibrium, the …