Does the stock market punish corporate malfeasance? A case study of citigroup

Bruce Mizrach, Susan Zhang Weerts

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This paper examines how well the market anticipates regulatory sanction. We look at key dates of SEC, NASD, FTC, Congressional and foreign investigations and their subsequent resolution. Our event study confirms that the settlements provide little new information to the market. In six major case groupings, we find highly accurate predictions from market capitalization changes of settlements and associated private litigation.

Original languageEnglish (US)
Pages (from-to)151-155
Number of pages5
JournalCorporate Ownership and Control
Volume3
Issue number4 A
DOIs
StatePublished - 2006

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)

Keywords

  • Event study
  • Probe
  • SEC
  • Settlement
  • Subpoena

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