
254 CHAPTER 10 CORPORATE GOVERNANCE AND THE LEGAL ENVIRONMENT
XIV. ANNOUNCEMENT EFFECTS BY VIOLATION CATEGORY
Table 10.5 summarizes market-model CAPE information by the actual or suspected
violation category to provide additional perspective on (−1,0) event-period wealth
effects tied to the enforcement activities of the DOJ, FTC, and SEC. Again, to test
for robustness, both parametric and nonparametric results are reported.
Informal investigations delve into a wide variety of actual or suspected violations.
The most common among these are three suspected accounting reporting viola-
tions and three inside trading investigations. Based upon statistically ...