The stock market reaction to fraudulent financial reporting

Raymond A.k. Cox; Thomas R. Weirich

doi:10.1108/02686900210437471

The stock market reaction to fraudulent financial reporting

Raymond A.k. Cox, Thomas R. Weirich

Accounting, School Of

Research output: Contribution to journal › Article › peer-review

16 Scopus citations

Abstract

Explores the impact that recent fraudulent financial reporting has had on the capital markets. Attempts to examine the stock market reaction, both to return and risk, to fraudulent financial reporting that has occurred in major corporations during the decade 19901999. Finds that capital market impact is significant in dollar terms with strong negative announcement effects the day before and on the day of a news event. Concludes that auditor and regulator vigilance needs to be strongly maintained in monitoring firms’ financial reporting.

Original language	English
Pages (from-to)	374-382
Number of pages	9
Journal	Managerial Auditing Journal
Volume	17
Issue number	7
DOIs	https://doi.org/10.1108/02686900210437471
State	Published - Oct 1 2002

Keywords

Capital markets
Financial reporting
Fraud

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10.1108/02686900210437471

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The stock market reaction to fraudulent financial reporting

Abstract

Keywords

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