Listing Standards and Fraud
Article first published online: 18 JUN 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Special Issue: Corporate Compliance and Wrongdoing
Volume 34, Issue 7-8, pages 451–470, October-December 2013
How to Cite
Cumming, D. and Johan, S. (2013), Listing Standards and Fraud. Manage. Decis. Econ., 34: 451–470. doi: 10.1002/mde.2622
- Issue published online: 17 SEP 2013
- Article first published online: 18 JUN 2013
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 operating under 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 there are significant differences in the nature of observed fraud across exchanges 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 should ideally be reported to improve investor knowledge, market transparency and market quality. Copyright © 2013 John Wiley & Sons, Ltd.