How Widespread and Predictable is Stock Broker Misconduct?

McCann, Craig; Qin, Chuan; Yan, Mike

doi:10.2139/ssrn.2768942

Cited by 6 publications

(9 citation statements)

References 4 publications

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“…Research evidence points to CEOs with prior criminal records being associated with aggressive financial outcomes in companies and even financial fraud (see, e.g., Davidson, Dey, and Smith [2015]). Several recent papers also examine the same FINRA data as Law and Mills [2019], and show recidivism in financial advisor misconduct (see, e.g., Egan, Matvos, andSeru [2017], McCann, Qin, andYan [2017]). These studies suggest that extra caution is in order when individuals with prior records of legal infractions or untrustworthy behavior are placed in positions of trust, as is the case with financial advisors.…”

Section: Financial Advisors and Financial Industry Regulatory Authority (Finra)mentioning

confidence: 99%

The Role of Gatekeepers in Capital Markets

Roychowdhury

Srinivasan

2019

J of Accounting Research

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Gatekeepers in financial markets have the power to provide the institutional stability, fortitude, and direction necessary for the development and the smooth functioning of capital markets. At the same time, they are often motivated by their own private incentives. This along with the tradeoffs they face, and the at-times unintended consequences of the regulations they propose and enforce, can undermine their effectiveness. A thorough understanding of gatekeepers and their roles can thus illuminate academics, the financial community, and regulators on how such gatekeepers can be the most effective and generate the greatest benefits for capital markets. Since gatekeeping roles and the literature they have inspired encompass a wide array of institutions and agencies, our overview concentrates on those that the conference papers appearing in this volume focus on. We conclude that collectively, the papers contribute to significant progress, and point out some crucial areas that call for further investigation and offer opportunities for future research.

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Section: Financial Advisors and Financial Industry Regulatory Authority (Finra)mentioning

confidence: 99%

The Role of Gatekeepers in Capital Markets

Roychowdhury

Srinivasan

2019

J of Accounting Research

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“…Several recent studies in finance and accounting examine misconduct in the financial advisory industry (Qureshi and Sokobin [2015], Maturana [2017, 2018], Charoenwong, Kwan, and Umar [2017], McCann, Qin, and Yan [2017], Dimmock, Gerken, and Graham [2018], Cook et al [2019], Seru [2018, 2019], Law and Zuo [2019]). Specifically, Egan, Matvos, and Seru [2019] document a surprising prevalence of criminal records among financial advisors.…”

Section: Introductionmentioning

confidence: 99%

“…These implications may extend to other professions such year t + 1, respectively. McCann, Qin, and Yan [2017] use gradient-boosting machine models to evaluate the performance of various models based on BrokerCheck data. 7 Qureshi and Sokobin [2015] and McCann, Qin, and Yan [2017] use arbitration awards or settlements exceeding $10,000 or $15,000 as a proxy for investor harm.…”

Section: Introductionmentioning

confidence: 99%

“…McCann, Qin, and Yan [2017] use gradient-boosting machine models to evaluate the performance of various models based on BrokerCheck data. 7 Qureshi and Sokobin [2015] and McCann, Qin, and Yan [2017] use arbitration awards or settlements exceeding $10,000 or $15,000 as a proxy for investor harm. Dimmock, Gerken, and Graham [2018] use customer disputes that receive arbitration awards or settlements as a proxy for financial misconduct.…”

Section: Introductionmentioning

confidence: 99%

“…Several recent studies in finance and accounting examine misconduct in the financial advisory industry (Qureshi and Sokobin [], Griffin, Kruger, and Maturana [, ], Charoenwong, Kwan, and Umar [], McCann, Qin, and Yan [], Dimmock, Gerken, and Graham [], Cook et al. [], Egan, Matvos, and Seru [, ], Law and Zuo []).…”

Section: Introductionmentioning

confidence: 99%

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Financial Gatekeepers and Investor Protection: Evidence from Criminal Background Checks

Law

Mills

2019

J of Accounting Research

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We examine whether financial advisors with pre-advisor criminal records pose a greater risk to investors than those without. We find that financial advisors with pre-advisor criminal records are more likely to receive future customer complaints. Their complaints are more likely to receive arbitration awards or settlements and are more likely to involve large settlements exceeding $100,000. Finally, clients are more likely to suffer service disruptions from engaging advisors with pre-advisor criminal records, even incremental to the brokerage firm being high-risk. Although we do not have performance data * Nanyang Technological University; † University of Texas at Austin. Accepted by Haresh Sapra. We appreciate helpful comments of two anonymous referees,

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Brokers and Investment Advisors

Graham

2016

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How Widespread and Predictable is Stock Broker Misconduct?

Cited by 6 publications

References 4 publications

The Role of Gatekeepers in Capital Markets

The Role of Gatekeepers in Capital Markets

Financial Gatekeepers and Investor Protection: Evidence from Criminal Background Checks

Brokers and Investment Advisors

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