한국컴퓨터정보학회논문지 (Journal of the Korea Society of Computer and Information)

  • 제21권12호
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  • Pages.189-196
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  • 2016
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  • 1598-849X(pISSN)
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  • 2383-9945(eISSN)
한국컴퓨터정보학회 (Korean Society of Computer Information)
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The Effectiveness of the Sanctions for Corporate Crime: Audit Review Evidence

  • Lee, Jeong-Mi (Dept. of Business Administration, Jungwon University)
  • 투고 : 2016.11.22
  • 심사 : 2016.12.08
  • 발행 : 2016.12.31
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초록

In this paper, I propose monetary penalties imposed on firms sanctioned by the Financial Supervisory Service for fraudulent financial reporting in accounting and auditing enforcement release(FSS-sanctioned fraud firms) should be disclosed to the notes of financial statement of the firms. Disclosing to the notes of financial statement for FSS-sanctioned fraud firms is an effective way to inform all the related parties of the information which affects the value of the corporation. Even though monetary penalties can affect the value of the firms, however, this study suggests that monetary penalties imposed on the fraud firms have a question on the effectiveness of the sanctions. In addition, this study finds that the magnitude of the market reactions between the fraud firms imposed by monetary penalties and the fraud firms imposed by non-monetary penalties has no difference. Based on these results, the information of FSS-sanctioned fraud firms should be disclosed to the notes of financial statements to have the market react effectively.

키워드

참고문헌

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