Do Financial Misconduct Experiences Spur White-collar Crime?

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

We use police records on individuals’ criminal activity to investigate whether personal experiences with financial misconduct spur white-collar crime. Experiences with financial misconduct derives from individuals with accounts in distressed banks where executives are prosecuted for misconduct. We show that individuals with such experiences are two to three times more likely to be convicted
of white-collar crime, compared to similar individuals with accounts in distressed banks where the financial supervisory authority did not press charges. Our results are driven by the extensive margin: the increase in white-collar crime is caused by individuals with no prior criminal record and appear to be motivated by a non-pecuniary channel.
Original languageEnglish
Publication date2020
Number of pages63
Publication statusPublished - 2020
EventThe 47th European Finance Association Annual Meeting. EFA 2020 - Virtual from The Aalto University School of Business, Helsinki, Finland
Duration: 20 Aug 202021 Aug 2020
Conference number: 47
https://efa2020.efa-meetings.org/

Conference

ConferenceThe 47th European Finance Association Annual Meeting. EFA 2020
Number47
LocationVirtual from The Aalto University School of Business
CountryFinland
CityHelsinki
Period20/08/202021/08/2020
Internet address

Keywords

  • Financial misconduct
  • Experiences
  • White-collar crime
  • Financial crisis
  • Economics of crime

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