Property crime, earnings variability, and the cost of capital

Brushwood, James D.; Dhaliwal, Dan S.; Fairhurst, Douglas J.; Serfling, Matthew

doi:10.1016/j.jcorpfin.2016.07.009

Cited by 15 publications

(16 citation statements)

References 71 publications

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“…The authors benchmark Compustat data against the true state of corporate headquarters listed on the firm's annual 10-K filing on Electronic Data Gathering, Analysis, and Retrieval (EDGAR) and find that error rates on the 2019 Compustat file exceed 10% and approach 20% as one goes back further in time. To mitigate this problem, some researchers supplement Compustat HQ data with the actual state of headquarters extracted from electronic 10-K filings on the Securities and Exchange Commission's (SEC) EDGAR website, using the programming language PHP (e.g., Brushwood et al, 2016), or else use the historical state of incorporation data from firms' 10-K reports on EDGAR that are available on Bill McDonald's website: https://sraf. nd.edu/data/augmented-10-x-header-data/.…”

Section: Methodological Shortcomingsmentioning

confidence: 99%

“…Cao et al (2019) document that firms headquartered in high corruption regions in China experience greater stock price crash risk, owing to over-investment in value-destroying projects. Finally, using US state-wide property crime rates from the Bureau of Justice Statistics, Brushwood et al (2016) document that higher crime rates increase both the cost of equity and debt capital, since crime rates increase the exposure to systematic risk (Korniotis & Kumar, 2013).…”

Section: Local Corruption and Capital Market Consequencesmentioning

confidence: 99%

See 1 more Smart Citation

Consequences of Local Social Norms: A Review of the Literature in Accounting, Finance, and Corporate Governance

Habib¹,

Costa²,

Al‐Hadi³

2021

SSRN Journal

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Section: Methodological Shortcomingsmentioning

confidence: 99%

Section: Local Corruption and Capital Market Consequencesmentioning

confidence: 99%

Consequences of Local Social Norms: A Review of the Literature in Accounting, Finance, and Corporate Governance

Habib¹,

Costa²,

Al‐Hadi³

2021

SSRN Journal

View full text Add to dashboard Cite

“…Cao et al (2019) document that firms headquartered in high corruption regions in China experience greater stock price crash risk, owing to over‐investment in value‐destroying projects. Finally, using US state‐wide property crime rates from the Bureau of Justice Statistics, Brushwood et al (2016) document that higher crime rates increase both the cost of equity and debt capital, since crime rates increase the exposure to systematic risk (Korniotis & Kumar, 2013).…”

Section: Review Of the Literature On Local Corruptionmentioning

confidence: 99%

Consequences of local social norms: A review of the literature in accounting, finance, and corporate governance

Habib

Costa

Al‐Hadi

2022

Accounting & Finance

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We synthesise the empirical archival research on the consequences of local social norms on accounting, finance, and corporate governance outcomes in an international setting. The literature reviewed is premised on the theory that corporations do not make decisions, but managers do, and managers are likely to be influenced by the socioeconomic environment of the region in which they operate and/or by the people with whom they interact. To provide a structure to our review, we identify social capital, religiosity, gambling norms, and corruption culture, as four constructs of local social norms and link these with financial reporting and external auditing, financial, investment, and dividend decisions, capital market consequences and finally, corporate governance and corporate social responsibility behaviour of firms. We highlight some limitations of the existing research and offer some suggestions for future research.

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“…Benyishay and Pearlman (2013) find that high regional crime rates convey negative effects on the growth of microenterprises. Bonaccorsi di Patti (2009) and Brushwood (2016) show that regions with higher crime rates are associated with more uncertain earnings and higher financing costs. Montoya (2016) and Pshisva and Suarez (2004) show that crime and violence in a region cause subsequent declines in economic activity and investment.…”

Section: Introductionmentioning

confidence: 99%