How Common is Securities Fraud?

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According to a new study, ten percent of public companies commit securities fraud each year.

Questions:

  1. According to the study, what percentage of companies are committing accounting violations?
  2. Why are some reviewers of the study critical of the new study’s definition of fraud?
  3. According to the report, how many of the frauds in public companies actually come to light?

Source:

Livni, E. (2023) Just How Common Is Corporate Fraud? The New York Times, Jan. 14 (Retrievable online at https://www.nytimes.com/2023/01/14/business/dealbook/how-common-is-corporate-fraud.html?)