EconPapers    
Economics at your fingertips  
 

The Impact of Illegal Business Practice on Shareholder Returns

Alan K Reichert, Michael Lockett and Ramesh Rao ()

The Financial Review, 1996, vol. 31, issue 1, 67-85

Abstract: Data regarding illegal firm behavior were obtained for the period 1980-1990. Using the single index market model, the study finds that public announcements of indictments for major corporate crimes have a significant and long-term negative impact upon shareholder wealth, particularly for firms found guilty of the indictment. The results indicate that indictments of larger firms have a proportionally smaller impact on excess returns. Furthermore, indictments handed down since the Levine/Boesky scandal appear to have had a more adverse impact. Copyright 1996 by MIT Press.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:31:y:1996:i:1:p:67-85

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-05-01
Handle: RePEc:bla:finrev:v:31:y:1996:i:1:p:67-85