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Fraud Cycles

Author

Listed:
  • Jiong Gong
  • R. Preston McAfee
  • Michael A. Williams

Abstract

Fraud is an ancient crime and one that annually causes hundreds of billions of dollars in losses. We develop an evolutionary theory that suggests cyclical behavior in frauds should be common. We perform a wavelet analysis of the frequencies of fraudulent and nonfraudulent offenses. Our results demonstrate that the frequencies of fraudulent offenses exhibit cyclical behavior that differs markedly from the cyclical behavior of nonfraudulent offenses.

Suggested Citation

  • Jiong Gong & R. Preston McAfee & Michael A. Williams, 2016. "Fraud Cycles," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(3), pages 544-572, September.
  • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201609)172:3_544:fc_2.0.tx_2-z
    DOI: 10.1628/093245616X14600936934117
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    References listed on IDEAS

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    Cited by:

    1. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-31, March.
    2. Marisa Agostini & Giovanni Favero, 2012. "Accounting fraud, business failure and creative auditing: A micro-analysis of the strange case of Sunbeam Corp," Working Papers 12, Department of Management, Università Ca' Foscari Venezia, revised Mar 2013.

    More about this item

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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