This paper studied the impact of the corporate scams on the share prices of the companies. In the pre-fraud period, the typical fraudulent firm has a higher valuation, invests more and exhibits higher sensitivity of investment than industry peers. The fraud period, by contrast, is characterized...

This paper studied the impact of the corporate scams on the share prices of the companies. In the pre-fraud period, the typical fraudulent firm has a higher valuation, invests more and exhibits higher sensitivity of investment than industry peers. The fraud period, by contrast, is characterized...