Monique ARNOLD (Utrecht University, The Netherlands) Peter-Jan ENGELEN (Utrecht University, The Netherlands)
Abstract
This paper examines the relationship between the discovery of illegal behaviour by companies on the stock price. It examines whether shareholders care about illegal corporate behaviour and punish companies by driving the stock price down. The empirical results show that stock prices react negatively on the announcement date of corporate malfeasance. We examine different impacts of the type of illegal behaviour, the level of misconduct, the phase and the magnitude.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.