The Geography of Financial Misconduct

Parsons, Christopher A.; Sulaeman, Johan; Titman, Sheridan

doi:10.2139/ssrn.2412970

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The Geography of Financial Misconduct

Journal of Finance, Forthcoming

56 Pages Posted: 24 Mar 2014 Last revised: 17 Jun 2018

See all articles by Christopher A. Parsons

Christopher A. Parsons

Marshall School of Business, University of Southern California

Johan Sulaeman

National University of Singapore (NUS) - Sustainable & Green Finance Institute (SGFIN); European Corporate Governance Institute (ECGI); Asian Bureau of Finance and Economic Research (ABFER)

Sheridan Titman

University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

There are 2 versions of this paper

Date Written: June 29, 2016

Abstract

Financial misconduct (FM) rates differ widely between major U.S. cities, up to a factor of three. Although spatial differences in enforcement and firm characteristics do not account for these patterns, city-level norms appear to be very important. For example, FM rates are strongly related to other unethical behavior, involving politicians, doctors, and (potentially unfaithful) spouses, in the city.

Keywords: corporate corruption, financial misconduct, peer effects, political fraud, white collar misconduct

JEL Classification: G30, G34, R30

Suggested Citation: Suggested Citation

Parsons, Christopher A. and Sulaeman, Johan and Titman, Sheridan, The Geography of Financial Misconduct (June 29, 2016). Journal of Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2412970. or http://dx.doi.org/10.2139/ssrn.2412970