Cheng, Mengyao; Gallimberti, Carlo Maria; Lee, Lian Fen; … - 2022
Using events associated with high-profile U.S. accounting frauds, we examine investor reactions of more than 18 …,000 unrelated firms across 40 countries. These firms have no direct economic ties with the U.S. fraud firm whether at the firm …, industry or country level. Yet, the stock price of unrelated firms decreases around the fraud events, particularly if the firms …