Financial Reporting Fraud and Other Forms of Misconduct: A Multidisciplinary Review of the Literature

Abstract

Financial reporting fraud and other forms of financial reporting misconduct are a significant threat to the existence and efficiency of capital markets. This study reviews the literature on financial reporting misconduct from the perspectives of law, accounting, and finance. Our goals are to establish a common language for researchers interested in this line of research, describe the main findings and challenges in these literatures, and provide directions for future research. Although research on financial reporting misconduct faces challenges, those challenges provide significant opportunities to advance the literature, as the answers to many questions on financial reporting misconduct remain unsettled.

Keywords: Financial reporting, fraud, misconduct, irregularities, misreporting, misrepresentation

JEL Classification: M41, K14, K22, K42, G14, G18, G32, G38