Proxies and Databases in Financial Misconduct Research

• 成果类型: Article
• 署名作者: Karpoff, Jonathan M.; Koester, Allison; Lee, D. Scott; Martin, Gerald S.
• 署名单位: University of Washington; University of Washington Seattle; Georgetown University; Nevada System of Higher Education (NSHE); University of Nevada Las Vegas; American University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-51766
• 发表日期: 2017
• 页码: 129-163
• 关键词: accounting restatements; earnings management; equity incentives; FIRMS; FRAUD; ENFORCEMENT; MARKET; CONSEQUENCES; reputation; contagion

摘要

An extensive literature examines the causes and effects of financial misconduct based on samples drawn from four popular databases that identify restatements, securities class action lawsuits, and Accounting and Auditing Enforcement Releases (AAERs). We show that the results from empirical tests can depend on which database is accessed. To examine the causes of such discrepancies, we compare the information in each database to a detailed sample of 1,243 case histories in which regulators brought enforcement actions for financial misrepresentation. These comparisons allow us to identify, measure, and estimate the economic importance of four features of each database that affect inferences from empirical tests. We show the extent to which each database is subject to these concerns and offer suggestions for researchers using these databases.