RT Article
T1 Effects of Illegal Behavior on the Financial Performance of US Banking Institutions
JF Journal of business ethics
VO 112
IS 2
SP 313
OP 324
A1 Zeidan, Mohamad Jamal
LA English
YR 2013
UL https://ixtheo.de/Record/1785646656
AB This study investigates whether financial performance is affected by corporate violations of laws and regulations. In a sample of 128 publicly traded banks that were subject to enforcement actions by US regulatory authorities over a 20-year period, we observed a significant negative market reaction pursuant to the violations. However, the market reaction did not vary meaningfully in accordance with the severity or repetitiveness of the violation. The results of this study are in conformity with previous research on industries other than banking, notably with regard to negative market reaction. This confirms that shareholders in the banking industry react in a manner considerably similar to their counterparts in other industries.
K1 Regulations
K1 Banking Industry
K1 Financial Performance
K1 Violations
DO 10.1007/s10551-012-1253-2