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 …

's Form ADV are useful for predicting fraud. Additional tests show that fraud by rogue employees is more predictable than firm …-wide fraud, but both types of fraud are significantly predictable. We revisit the fraud prediction model of Dimmock and Gerken … (2012) and test its performance out-of-sample (using fraud cases discovered since that article's publication). We find the …

We test the predictability of investment fraud using a panel of mandatory disclosures filed with the U.S. Securities … have significant power to 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 examine the ability of …

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 …

against it, i.e., cases of fraud or cheating, or payment default attract a much more negative reaction as compared to cases …

Recent scholarship overwhelmingly contends that the fraud on the market securities class action has neither deterrent …; and diversification, which holds that fraud constitutes a diversifiable risk, such that diversified shareholders both gain … and lose from fraud in equal measure and hence are not negatively impacted. These critiques are arguably the most …

Although securities fraud ... …

Participants in the U.S. capital markets can be sued for securities fraud by a mishmash of enforcers, including the SEC …