Search results for "Accounting scandals"
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The Hubris Hypothesis of Corporate Social Irresponsibility: Evidence from the Parmalat Case
2013
In the last decade, various accounting scandals have come about (such as Enron, Global Crossing, Tyco, Worldcom and Parmalat), stimulating the burgeoning debate on the drivers and conditions underlying the emergence of financial frauds.
Why Do U.S.-Listed Chinese Firms Go Private?
2012
The period 2010-2012 saw a dramatic increase in the number of Chinese firms listed in the United States announcing deals to delist and go private. We argue that accounting scandals and legal uncertainties involving Chinese firms in recent years may have caused outside investors to struggle to distinguish between legitimate and fraudulent firms. As a result some legitimate Chinese companies may have become undervalued, which arguably has given them a heightened incentive to go private. We examine all the companies that announced going-private deals during this period and find evidence that firms that go private tend to do so after a prolonged period of negative excess stock returns relative …