of “independent analysis” that helps the Securities and Exchange Commission (SEC) prosecute fraud. To receive a bounty … under section 922(a) of the Dodd-Frank Act, “independent knowledge” of fraud is not required. While the statute recognizes …

We examine whether analyst coverage influences corporate fraud in China. The fraud triangle specifies three main … factors, i.e. opportunity, incentive, and rationalization. On the one hand, analysts may reduce the fraud opportunity factor …, analysts may increase the fraud incentive factor by pressurizing managers to achieve short-term performance targets, which can …

Claims of securities fraud had historically failed because investors seldom rely on false or misleading statements when … transacting securities. To bolster confidence in securities markets, the U.S. Supreme Court adopted a doctrine called “fraud … stock has constructively relied on the fraud. Fraud-on-the-market is not only unavailable in other markets, but it is …

This study examines reactions of financial analysts to the disclosure of corporate fraud. We posit that analysts … downgrade earnings forecasts of fraud firms after fraud disclosure to signal their quality and integrity. We explore how … downgrades, and consequently affect their responses to corporate fraud. Using longitudinal data on Chinese publicly traded firms …