New Findings from Federal Reserve Bank in the Area of Investment Described (How Does Judges’ Personal Exposure To Financial Fraud Affect White-collar Sentencing?): Investment

NewsRx Policy and Law Daily

2024 NOV 20 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New research on Investment is the subject of a report. According to news originating from Richmond, Virginia, by NewsRx correspondents, research stated, “We study whether federal judges’ personal exposure to financial fraud affects their professional behavior, in the form of sentencing outcomes in white-collar cases. Following the methodology outlined in our registered report, we construct a novel measure of financial fraud exposure based on judges’ direct shareholdings in firms that commit financial fraud.”

Financial support for this research came from LSE Research Impact and Support Fund grant.

Our news journalists obtained a quote from the research from Federal Reserve Bank, “Using this measure, we exploit the random assignment of cases to judges to examine whether judges exposed to fraud in one firm are (1) less likely to rule in favor of defendants in white-collar cases involving other firms and (2) less likely to grant favorable pretrial motions to defendants. We find minimal evidence in support of either (1) or (2), concluding that for all but the most serious frauds, judges are unlikely to let their personal victimhood experience affect their professional sentencing behavior with respect to related cases.”

According to the news editors, the research concluded: “Our study broadens our understanding of the spillover effects of financial fraud enforcement and contributes to the literature on how judges’ personal experiences can shape judicial decision-making.”

This research has been peer-reviewed.

For more information on this research see: How Does Judges’ Personal Exposure To Financial Fraud Affect White-collar Sentencing? Journal of Accounting Research, 2024. Journal of Accounting Research can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Accounting Research - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1475-679X)

The news correspondents report that additional information may be obtained from Trung Nguyen, Federal Reserve Bank, Richmond, VA 23219, United States. Additional authors for this research include Aneesh Raghunandan and Alexandra Scherf.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1475-679X.12584. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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