A New Look at Reporting Fraud: By Exchange
Douglas J. Cumming
York University - Schulich School of Business
York University - Schulich School of Business; Tilburg Law and Economics Center (TILEC)
November 24, 2011
TILEC Discussion Paper No. 2011-050
Statistics reporting litigated cases of fraud on an exchange-by-exchange basis are not readily available to investors. This paper introduces data from three countries with multiple exchanges with different listing standards, – Canada, the United Kingdom and the United States – to show litigated cases of fraud significantly vary by country, and the different exchanges within the country. Comparisons are also made to Brazil, China and Germany to assess out-of-sample inferences. The data examined suggest listing standards have a strong influence over the nature of observed fraud by securities commissions within the United States; by contrast, outside the United States there appears to be a comparative lack of enforcement. The data also suggest policy implications for the ways in which fraud ought to be reported to improve investor kowledge, market transparency and market quality.
Number of Pages in PDF File: 39
Keywords: Corporate fraud, Exchange listing standards, Securities commissions, NYSE
JEL Classification: G32, J33
Date posted: November 25, 2011
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