Fraud recovery and the quality of country governance
| Autor: | Atanas Mihov, Filippo Curti |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Finance
Reverse causality Government Economics and Econometrics 050208 finance Poor risk Corruption business.industry media_common.quotation_subject Tying Corporate governance 05 social sciences Financial system Management quality Rule of law 0502 economics and business Economics Quality (business) Endogeneity 050207 economics Robustness (economics) business media_common |
| Zdroj: | Journal of Banking & Finance. 87:446-461 |
| ISSN: | 0378-4266 |
| DOI: | 10.1016/j.jbankfin.2017.11.009 |
| Popis: | Using supervisory data from U.S. financial institutions on fraud-related losses in foreign markets, we find that losses in countries with poor governance have lower recovery rates. Our results are robust to accounting for potential endogeneity and reverse causality concerns, among numerous robustness checks. The association is driven by intuitive governance dimensions such as control of corruption, rule of law, regulatory quality and government effectiveness. In addition, country governance plays a particularly important role in fraud recovery for firms with poor risk management quality. Overall, this paper presents unique and novel evidence tying country governance quality to firm-level risk realizations. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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