The stock market reaction to fraudulent financial reporting

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 impa...

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Bibliographic Details
Published in:	Managerial auditing journal Vol. 17; no. 7; pp. 374 - 382
Main Authors:	Cox, Raymond A.K, Weirich, Thomas R
Format:	Journal Article
Language:	English
Published:	Bradford MCB UP Ltd 01-10-2002 Emerald Group Publishing Limited
Subjects:	Annual reports Auditing Big Five accounting firms Capital markets Chief executive officers Earnings Efficient markets Financial reporting Financial statements Fraud Hypotheses Kickbacks Litigation Regulation Revenue recognition Securities markets Studies Financial reporting Capital markets Fraud
Online Access:	Get full text
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Summary:	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.
Bibliography:	original-pdf:0510170703.pdf href:02686900210437471.pdf istex:9193CC711F0214EBA24B506B520FCF23A8FFB222 filenameID:0510170703 ark:/67375/4W2-93RCSSVB-T ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23
ISSN:	0268-6902 1758-7735
DOI:	10.1108/02686900210437471