This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct, there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible accounting frauds (e.g., greater media attention and larger stock price declines) are more strongly associated with a future increase in financially motivated neighborhood crime. We also find that the association between fraud revelation and increased future financially motivated crime is strongest when local job markets are shallower and where local income inequality is high, consistent with adverse shocks from fraud putting pressure on local communities. Combined, our study provides evidence that the societal ramifications of corporate accounting misconduct extend beyond adversely impacting a firm's capital providers and industry peers to negatively influence the daily life of the residents in the firm's local community.

中文翻译：

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公司会计不当行为的局部溢出效应：来自城市犯罪率的证据*

本研究证明了会计欺诈的溢出效应，表明在会计不端行为曝光后，在这些不端行为公司所在的城市中，出于经济动机的邻里犯罪（抢劫、盗窃等）有所增加。我们发现，更明显的会计欺诈（例如，更多的媒体关注和更大的股价下跌）与未来出于经济动机的邻里犯罪增加的关联性更强。我们还发现，当当地就业市场较浅且当地收入不平等程度较高时，欺诈揭露与未来出于经济动机的犯罪增加之间的关联最强，这与欺诈给当地社区带来压力的不利冲击相一致。结合，