CONSEQUENCES OF FRAUDULENT ACTS: REMEDIATION
To date there has been limited research on the consequences of fraudulent acts and the nature
of remedial actions taken by individuals and organizations that have been associated with fraud.
One exception is Beasley et al. (2010). The authors examine 347 firms identified in AAERs and
discuss the consequences of the SEC action on the firms, management, the boards of directors, and
the stock price. However, additional research in this area could help in understanding the impact of
penalties (e.g., incarceration) on fraudsters and could also help in developing more effective
penalties and remedial actions that could deter corporations and individuals from committing fraud
in the future. The role of recidivism (repeat offenses by the perpetrator) with regard to fraud and
financial crimes is largely unexplored and research with regard to other criminal offenses may not
apply to economic crime.