Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9727025 | The Journal of Socio-Economics | 2005 | 22 Pages |
Abstract
White-collar criminology scholarship shows that “control frauds” (frauds led by the CEO) use accounting fraud to deceive (or suborn) sophisticated financial market participants. Large control frauds cause greater financial losses than all other forms of property crimes combined. Weak regulation, supervision and ethics produce epidemics of control fraud that cause systemic economic damage. As with the natural world, these financial super-predators act like pathogens that take over a firm and act as a “vector” to cause ever greater damage. Control fraud theory poses a major challenge to the efficient markets hypothesis and the resulting praxis that devalues financial regulation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
William K. Black,