when a Ponzi fraud can occur and what interventions can prevent it. A key feature of Ponzi frauds is that the long …-lived agent builds trust over time and improves their reputation by keeping the scheme going. …

product market sanctions and find that after a firm is accused of fraud, its customers impose real and significant economic … customer sanctions result in declines in firm operating performance. At the time the alleged fraud becomes public information … addition, the fraud has significant wealth effects for the firm's customers which seem to impose reputational sanctions …

This study examines reactions of financial analysts to the disclosure of corporate fraud. We posit that analysts … downgrade earnings forecasts of fraud firms after fraud disclosure to signal their quality and integrity. We explore how … downgrades, and consequently affect their responses to corporate fraud. Using longitudinal data on Chinese publicly traded firms …