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A New Look at Reporting Fraud: By Exchange

39 Pages Posted: 25 Nov 2011  

Douglas J. Cumming

York University - Schulich School of Business

Sofia Johan

York University - Schulich School of Business; Tilburg Law and Economics Center (TILEC)

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Date Written: November 24, 2011

Abstract

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.

Keywords: Corporate fraud, Exchange listing standards, Securities commissions, NYSE

JEL Classification: G32, J33

Suggested Citation

Cumming, Douglas J. and Johan, Sofia, A New Look at Reporting Fraud: By Exchange (November 24, 2011). TILEC Discussion Paper No. 2011-050. Available at SSRN: https://ssrn.com/abstract=1964211 or http://dx.doi.org/10.2139/ssrn.1964211

Douglas J. Cumming (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Sofia A. Johan

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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