We document that regulatory enforcement actions for financial misrepresentation cluster in industry-specific waves and that wave-related enforcement has information spillovers on industry peer firms. Waves and spillovers have significant effects on share prices. Early-wave target firms have the...

We use data from enforcement actions initiated under the U.S. Foreign Corrupt Practices Act (FCPA) to examine firms' incentives to pay bribes and their costs when they are caught. Bribery is associated with projects that are valuable even considering the expected penalties. For firms that are...