Summary #1454

Big name corporations more likely to commit fraud

news.wsu.edu
  • Researchers analyzed 250 US public corporations involved in securities fraud between 2005-2013, and compared them to a uninvolved sample.
  • The analysis showed that prestigious, big name companies are more likely to commit financial fraud, manipulate number and markets, lie to investors and the SEC.
  • Companies with Fortune 500 status were 4 times more likely to be involved in fraud compared to the no-fraud sample.
  • [Personal note - it’s good that scientists are uncovering basic facts that every 1st-grader knows, heh heh]

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