This paper introduces a new taxonomy that classifies short-sales constraints into tangible and intangible categories. It includes the development of a theoretical framework relating overpricing and implementation drag to empirically estimate the four tangible constraints. The literature...

This study examines whether and how online investor-firm interactions reduce the incidence of corporate fraud. We find that more interactions and investors’ negative sentiment reduce the likelihood of committing fraud. This finding remains with the use of various identification and...

We examine the effect of insider share pledges on corporate fraud. We find a positive, causal relation between share pledges by controlling shareholders and detected corporate fraud. Firms whose controlling shareholders pledge have longer fraud detection cycles and receive lighter punishments....