IDEAS home Printed from https://ideas.repec.org/a/now/fntfin/0500000073.html

What is Forensic Finance?

Author

Listed:
  • John M. Griffin
  • Samuel Kruger

Abstract

potentiallyWe survey a growing field studying aspects of finance that are illegal, illicit, or immoral. Some of the literature is investigative in nature to uncover malfeasance that is recent and possibly ongoing. Other forensic finance research examines past events to generate a fuller understanding of the activities, economic magnitudes, incentives, and players involved. The work spans newer areas such as cryptocurrencies, financial advisor and broker misconduct, and greenwashing; and newer research in established fields that are still developing, such as insider trading, structured finance, market manipulation, political connections, public finance, and corporate fraud. We highlight investigative forensic finance, common economic questions, common empirical methods, industry and political opposition, censoring, and the importance of avoiding publication biases. Compared to other finance papers, forensic work has similar citations and SSRN downloads, and more media and Securities and Exchange Commission (SEC) citations. Along with prominent examples of industry reform and awareness, this highlights the potential for real-world impact. By laying out commonalities in research themes, questions, methods, and approaches across fields that may at first seem disparate, we hope to encourage more investigation of incentives and mechanisms in darker corners of finance.

Suggested Citation

  • John M. Griffin & Samuel Kruger, 2024. "What is Forensic Finance?," Foundations and Trends(R) in Finance, now publishers, vol. 14(3), pages 137-243, October.
    • Handle: RePEc:now:fntfin:0500000073
    DOI: 10.1561/0500000073
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/0500000073
    Download Restriction: no
    File URL: https://libkey.io/10.1561/0500000073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:cup:jfinqa:v:46:y:2011:i:06:p:1865-1891_00 is not listed on IDEAS
    2. Thomas Tørsløv & Ludvig Wier & Gabriel Zucman, 2023. "The Missing Profits of Nations," Post-Print halshs-04928943, HAL.
    3. Gabriel Zucman, 2013. "The Missing Wealth of Nations: Are Europe and the U.S. net Debtors or net Creditors?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1321-1364.
    4. Luigi Zingales, 2015. "Does Finance Benefit Society?," NBER Working Papers 20894, National Bureau of Economic Research, Inc.
    5. Yu, Frank & Yu, Xiaoyun, 2011. "Corporate Lobbying and Fraud Detection," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 46(6), pages 1865-1891, December.
    6. Thomas Tørsløv & Ludvig Wier & Gabriel Zucman, 2023. "The Missing Profits of Nations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(3), pages 1499-1534.
    7. Gabriel Zucman, 2014. "Taxing across Borders: Tracking Personal Wealth and Corporate Profits," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 121-148, Fall.
    8. Zucman, Gabriel & Fagan, Teresa Lavender & Piketty, Thomas, 2015. "The Hidden Wealth of Nations," University of Chicago Press Economics Books, University of Chicago Press, number 9780226245423, Febrero.
    9. Eric Zitzewitz, 2012. "Forensic Economics," Journal of Economic Literature, American Economic Association, vol. 50(3), pages 731-769, September.
    10. Yermack, David, 2009. "Deductio' ad absurdum: CEOs donating their own stock to their own family foundations," Journal of Financial Economics, Elsevier, vol. 94(1), pages 107-123, October.
    11. Yue Wu & Kaifu Zhang & Jinhong Xie, 2020. "Bad Greenwashing, Good Greenwashing: Corporate Social Responsibility and Information Transparency," Management Science, INFORMS, vol. 66(7), pages 3095-3112, July.
    12. Maisy Wong, 2018. "CMBS and Conflicts of Interest: Evidence from Ownership Changes for Servicers," Journal of Finance, American Finance Association, vol. 73(5), pages 2425-2458, October.
    13. Yermack, David, 2014. "Tailspotting: Identifying and profiting from CEO vacation trips," Journal of Financial Economics, Elsevier, vol. 113(2), pages 252-269.
    14. Zhang, Anthony Lee, 2022. "Competition and manipulation in derivative contract markets," Journal of Financial Economics, Elsevier, vol. 144(2), pages 396-413.
    15. Stefan Zeume, 2017. "Bribes and Firm Value," The Review of Financial Studies, Society for Financial Studies, vol. 30(5), pages 1457-1489.
    16. Luigi Zingales, 2015. "Presidential Address: Does Finance Benefit Society?," Journal of Finance, American Finance Association, vol. 70(4), pages 1327-1363, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vito Amendolagine & Randolph Luca Bruno & Maria Cipollina & Gianluigi De Pascale, 2025. "Minimum global tax: winners and losers in the race for mergers and acquisitions," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(4), pages 1249-1278, December.
    2. Andreas Fagereng & Luigi Guiso & Davide Malacrino & Luigi Pistaferri, 2020. "Heterogeneity and Persistence in Returns to Wealth," Econometrica, Econometric Society, vol. 88(1), pages 115-170, January.
    3. James Alm, 2024. "Tax Compliance, Technology, Trust, and Inequality in a Post-Pandemic World," Working Papers 2404, Tulane University, Department of Economics.
    4. Clara Martínez Toledano, 2020. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," Working Papers hal-02876979, HAL.
    5. Filip Novokmet & Thomas Piketty & Gabriel Zucman, 2018. "From Soviets to oligarchs: inequality and property in Russia 1905-2016," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 189-223, June.
    6. Fagereng, Andreas & Guiso, Luigi & Pistaferri, Luigi, 2022. "Assortative Mating and Wealth Inequality," CEPR Discussion Papers 17148, Centre for Economic Policy Research.
    7. Hünnekes, Franziska & Konradt, Maximilian & Schularick, Moritz & Trebesch, Christoph & Wingenbach, Julian, 2025. "Exportweltmeister: Germany’s foreign investment returns in international comparison," Journal of International Economics, Elsevier, vol. 155(C).
    8. Arjan Lejour & Jan Möhlmann & Maarten ’t Riet, 2022. "The immeasurable tax gains by Dutch shell companies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(2), pages 316-357, April.
    9. Jakob Miethe & Helge Niesytka, 2016. "Tax Evasion and the Impact of International Regulation: A Summary of Empirical Results," DIW Roundup: Politik im Fokus 104, DIW Berlin, German Institute for Economic Research.
    10. James Alm, 2021. "Tax evasion, technology, and inequality," Economics of Governance, Springer, vol. 22(4), pages 321-343, December.
    11. Kwok, Tsz Chun & Spiro, Daniel & van Benthem, Arthur A., 2026. "Firm ownership and pollution," Journal of Environmental Economics and Management, Elsevier, vol. 136(C).
    12. Ananyev, Maxim, 2022. "Political economy of cross-border income shifting: A protection racket approach," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 1087-1102.
    13. Juliana Londoño-Vélez & Javier Ávila-Mahecha, 2025. "Behavioural Responses to Wealth Taxation: Evidence from Colombia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(4), pages 2624-2655.
    14. Blouin, Jennifer & Robinson, Leslie, 2025. "Accounting for the profits of multinational enterprises: Double counting and misattribution of foreign affiliate income," Journal of Public Economics, Elsevier, vol. 252(C).
    15. Vincent Bouvatier & Gunther Capelle-Blancard & Anne-Laure Delatte, 2025. "Banks defy gravity in tax havens," Oxford Economic Papers, Oxford University Press, vol. 77(3), pages 885-904.
    16. repec:tul:wpaper:2306 is not listed on IDEAS
    17. Alstadsæter, Annette & Johannesen, Niels & Zucman, Gabriel, 2018. "Who owns the wealth in tax havens? Macro evidence and implications for global inequality," Journal of Public Economics, Elsevier, vol. 162(C), pages 89-100.
    18. Athanasios Vasilakis & Vasileios Vlachos, 2025. "Country Level Determinants of Base Erosion and Profit Shifting (BEPS): A Systematic Literature Review," Hacienda Pública Española / Review of Public Economics, IEF, vol. 255(4), pages 11-28, December.
    19. Tommaso Faccio & Roberto Iacono, 2022. "Corporate Income Taxation and Inequality: Review and Discussion of Issues Raised in The triumph of injustice—How the rich dodge taxes and how to make them pay (2019)," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(3), pages 819-829, September.
    20. Jeanne Bomare & Matthew Collin, 2025. "When Bankers Become Informants: Behavioral Effects of Automatic Exchange of Information," Working Papers 033, EU Tax Observatory.
    21. Clara Martínez Toledano, 2017. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," PSE Working Papers halshs-02797549, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:fntfin:0500000073. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.