Using a panel of mandatory SEC disclosure filings we test the predictability of investment fraud. We find that past … regulatory and legal violations, conflicts of interest, and monitoring, are significantly associated with future fraud. Avoiding … the 5% of firms with the highest fraud risk allows investors to avoid 29% of investment frauds, and over 40% of the total …

We test the predictability of investment fraud using a panel of mandatory disclosures filed with the SEC. We find that … predict fraud. Avoiding the 5% of firms with the highest ex ante predicted fraud risk would allow an investor to avoid 29% of … fraud cases and over 40% of the total dollar losses from fraud. We find no evidence that investors receive compensation for …

,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 …

seemingly innocuous transgressions may lead to accounting fraud …

tell investors certain things about a company's operations and current financial position, and about the managers … corporate signals and securities fraud. The incentive to communicate using corporate signals has increased in recent years, a … federal securities laws aimed at better deterring fraud and making companies more transparent. The Article makes three major …

explain the failure to sanction managers who commit fraud. First, managers control the information that would reveal who was … involved in accounting fraud and thus can impede external investigations (and hence sanctions). Second, managers also influence … whether the firm will investigate and sanction accounting fraud internally. Director & officer insurance and managers' control …

We examine the deterrence effect of whistleblower laws on accounting fraud. We exploit state False Claims Acts (FCAs …), under which reporting fraud at a firm invested in by a state's pension fund can result in monetary rewards from that state …'s government. Using staggered adoption of FCAs between 2001 and 2010, we compare the accounting fraud probability of firms owned by …

Auditors are expected by the public and to find all financial statement fraud, even though Generally Accepted Auditing … experience of an expert witness in numerous major fraud cases where auditors were sued for not detecting fraud to illustrate … situations in which auditors can, and cannot, reasonably be expected to detect fraud. We discuss factors that can make fraud …

We examine the deterrence effect of the Dodd–Frank whistleblower provision on accounting fraud. To facilitate causal … inference, we use state False Claims Acts (FCAs), under which whistleblowing about accounting fraud at a firm invested in by a … the likelihood of accounting fraud of treatment firms by 12%–22% relative to control firms, but do not find that it …

of internal control represents a protective barrier against various kinds of data manipulation and fraud inside the … companies. Special attention was paid to fraud in financial statements since it can cause the most serious damage leading to …