Business Commons^™

Occupational Fraud: Executive Compensation And Enforcements Against Auditors And Perpetrators., Erlina Papakroni

Graduate Theses, Dissertations, and Problem Reports

This dissertation is comprised of three studies that examine the association of executive compensation with financial statement fraud and enforcements pursued against the independent auditor and the principal perpetrators when occupational fraud is detected.

The first study examines competing, though non-mutually exclusive, hypotheses for the path that equity compensation follows on its way to financial misreporting. We find that firms that experience financial statement fraud pay their executives higher levels and a higher proportion of equity compensation across the entire executive’s tenure. This starts in the first year of an executive’s tenure and continues up until the fraud period. These …