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Posted by  in Fraud Prevention

International Fraud Awareness Week continues!  Earlier this year, the DARTON GROUP team read a study in The Journal of Finance entitled “Who Blows the Whistle on Corporate Fraud?”.

The study was completed by Alexander Dyck, Professor of Finance at the University of Toronto, Adair Morse, Assistant Professor of Finance at the University of Chicago, and Luigi Zingales, Professor of Entrepreneurship and Finance at the University of Chicago.  The team investigated fraud cases in large U.S. companies between 1996 and 2004 to identify the most effective mechanisms for detecting corporate fraud.

It Takes A Village

The study’s authors conclude that fraud detection does not rely on standard corporate governance actors (investors, SEC, and auditors), but takes a village, including several non-traditional players (employees, media, and industry regulators).

Read the full article here.

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