Corporate Fraud and Liquidity
Journal of Trading
This article examines the implications of corporate fraud on stock liquidity. We find that the revelation of corporate fraud has an adverse effect on liquidity not only in the short term but also in the long term. We also find that the complexity and severity of fraudulent activities do not further reduce liquidity; rather, the existence of fraud is what matters to investors.
Kuvvet, Emre, "Corporate Fraud and Liquidity" (2015). HCBE Faculty Articles. 765.