This paper studies the effect of anti-bribery enforcement on the accrual quality of investigated firms and their peers. We analyze a hand-collected sample of 241 bribery cases investigated under the US Foreign Corruption Practices Act (FCPA) over the period 1978-2015. Exploiting the disclosure...

In this paper, I investigate whether prosecution under the Foreign Corrupt Practices Act (FCPA) affects the level of investment of targeted firms and their peers in the same industry. I find that peer firms decrease the level of their investment once they become aware of the opening of an FCPA...