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How Common is Corporate Fraud?

How Common is Corporate Fraud?

by Starling Insights

Starling Insights Editorial Board

Feb 09, 2023

Observations

A recent study on corporate crime suggests accounting fraud may be endemic among US public companies. The researchers — Alexander Dyck (University of Toronto), Adair Morse (University of California, Berkeley), and Luigi Zingales (University of Chicago) — estimate that 41% of public companies materially misstate their financial accounts, and at least 10% engage in securities fraud.

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