The Geography of Financial Misconduct
56 Pages Posted: 24 Mar 2014 Last revised: 17 Jun 2018
Date Written: June 29, 2016
Financial misconduct (FM) rates differ widely between major U.S. cities, up to a factor of three. Although spatial differences in enforcement and firm characteristics do not account for these patterns, city-level norms appear to be very important. For example, FM rates are strongly related to other unethical behavior, involving politicians, doctors, and (potentially unfaithful) spouses, in the city.
Keywords: corporate corruption, financial misconduct, peer effects, political fraud, white collar misconduct
JEL Classification: G30, G34, R30
Suggested Citation: Suggested Citation