Work

Listing Standards and Fraud

Year: 2013

Type: article

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.

Source: Managerial and Decision Economics

DOI: 10.1002/mde.2622

Authors: Douglas Cumming, Sofia Johan

Institutions: York University, Florida Atlantic University, Tilburg University, University of Aberdeen

Language: English

Topic: Securities Regulation and Market Practices

Subfield: Law

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

Funder: Research Foundation of CFA Institute