Is fraud contagious? Coworker influence on misconduct by financial advisors
Using a novel data set of U.S. fi nancial advisors that includes individuals' employment histories and misconduct records, we show that co-workers influence an individual's propensity to commit financial misconduct. We identify co-workers' effect on misconduct using changes in co-...
Saved in:
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
2019
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/102643 http://hdl.handle.net/10220/47774 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Using a novel data set of U.S. fi nancial advisors that includes individuals' employment histories
and misconduct records, we show that co-workers influence an individual's propensity to
commit financial misconduct. We identify co-workers' effect on misconduct using changes
in co-workers caused by mergers of financial advisory firms. The tests include merger-fi rm
fixed effects to exploit the variation in changes to co-workers across branches of the same
fi rm. The probability of an advisor committing misconduct increases if his new co-workers,
encountered in the merger, have a history of misconduct. This effect is stronger between
demographically similar co-workers. |
|---|