job Market Paper

Wiped Out? Financial Health of Individuals Affected by Accounting Fraud

WITH JI-EON KIM

This study examines how intentional financial misrepresentation (i.e., accounting fraud) by a firm affects the financial situation of the individuals who establish the spatial community around which the firm operates. Utilizing granular data from a consumer credit panel covering 10% of the U.S. population with credit histories, we analyze both pre-revelation financial decisions and post-revelation financial distress. Upon revelation, we identify significant increases in indicators of financial distress among individuals who reside in spatial proximity to fraudulent firms' headquarters. On average, we observe incremental increases in debt in collection, affecting approximately one in every one hundred to one in every two hundred individuals. Additionally, we compare individuals' credit demand and supply under fraudulent 'good' information to that under truthful 'bad' information from firms headed for bankruptcy, revealing misinformed financial decisions before the fraud's exposure. Overall, we offer critical insights into the connection between one of the roots of social outcomes, the financial health of a broad set of individuals in a spatial community, and accounting fraud.

Working Paper

Press Coverage of Tax Reforms and Interest Groups

SOLO-AUTHORED

TRR 266 Accounting for Transparency Working Paper Series No. 129, doi: 10.2139/ssrn.4551643 

Tax Knowledge Diffusion via Strategic Alliances

WITH JENS MUELLER

TRR 266 Accounting for Transparency Working Paper Series No. 17, doi: 10.2139/ssrn.3532367  

Work In Progress

Patent Boxes: Nexus Requirement and Innovation Activity

SOLO-AUTHORED, EU/EUROSTAT RESEARCH PROJECT PROPOSAL 83/2023-CIS (APPROVED)

Publications w/O ACADEMIC Peer-Review

Expected Economic Effects from the EU Public CbCR - A Literature Review

WITH THOMAS HOPPE, JENS MUELLER AND KATHARINA WITTEK, (2021), ISTR, 2021, 925

Published in German: Eine oekonomische Einordnung des oeffentlichen Country-by-Country-Reporting in der EU

Implications from the Tax Cuts and Jobs Act on the German CFC Legislation

WITH MARKUS SCHUEMMER AND JOHANNES LEUSDER, (2018), ISTR, 2018, 397

Published in German: Implikationen der US-Steuerreform auf die Hinzurechnungsbesteuerung nach dem AStG

Book

Accounting for Research and Development Activities

WITH MAXIMILIAN BLANKENFELDT AND JENS MUELLER, (2021), CHAPTER IN: VOEGELE, INTANGIBLES - IMMATERIELLE WERTE, 2ND EDITION

Published in German: Forschung und Entwicklung: Kriterien fuer die Aktivierung in der Unternehmenspraxis

Arndt Weinrich

arndt.weinrich@upb.de