Sign and Cost of Corporate Scandals: Evidence from Earnings Quality and Required Rate of Return

2023 Fiscal Year Final Research Report

• Project/Area Number: 19K13863
• Research Category: Grant-in-Aid for Early-Career Scientists
• Allocation Type: Multi-year Fund
• Review Section: Basic Section 07100:Accounting-related
• Research Institution: Meiji University
• Principal Investigator: Omura Akihiro 明治大学, 研究・知財戦略機構(駿河台), 研究推進員 (20824931)
• Project Period (FY): 2019-04-01 – 2024-03-31
• Keywords: 利益の質 / 企業不正 / ESG / CSR / SRI / 期待収益率 / 資本コスト / 企業系列

Outline of Final Research Achievements

The impact of fraudulent activities by companies on society is immense. However, even after their fraud being reported by media, many Japanese companies are seen to continue engaging in other irresponsible activities. Considering this, there is a possibility that companies may make rational judgments based on the fact that penalties for fraudulent activities are lighter in Japan, and it is difficult to quantitatively measure changes in corporate consciousness. Consequently, incentives to correct behavior are low. One of the main objectives of this research project was to deepen understanding of why companies fail to fulfill their responsibilities using quantitative analysis approaches. Our analysis has failed to obtain a statistically significant relationship between a media report on company's fraudulent activities and its funding cost. Although it is depending on the industry or type of behavior, the results indicate a situation where 'the one who does wrong wins.'

Free Research Field

社会科学　経済学　金融・ファイナンス

Academic Significance and Societal Importance of the Research Achievements

行いを正さない企業が多く存在する背景の一つに、不正による将来への影響（資金調達に直結する株式市場による要求収益率の上昇、等）を会社が過小評価している可能性が考えられる。これらを検証することで、情報開示を含む今後の制度設計に寄与すると考える。さらに、持続可能な経済活動を達成するために金融市場が果たす役割は大きく、仮に企業側で自浄作用が働かないのであれば金融市場がそれを促さならず、本研究結果はその必要性の高さを示したといえる。また、大標本を用いた同様の実証研究はこれまで殆どなく、会計や金融経済など幅広い分野での議論発展に資すると考える。