Document Type
Report
Key Takeaways
• When a firm is prosecuted for criminal behavior, the resulting decline in stock returns averages almost 11%. • Most of the decline is due to reputational costs, which the author estimates to be five times the financial penalties of a settlement or judgment. • The decline in stock price arises over a series of events from notification to sentencing. It does not take place all at once in response to conviction or sentencing.
Publication Date
2015
Disciplines
Business
Copyright
© 2015, University of South Carolina
Publication Info
2015.