We combine U.S. Census data with SEC enforcement actions to examine employees' outcomes, such as wages and turnover, before, during, and after periods of fraudulent financial reporting. We find that fraud firms’ employees lose about 50% of cumulative annual wages, compared to a matched sample, and the separation rate is much higher after fraud periods. Yet, employment growth at fraud firms is positive during fraud periods; these firms overbuild and hire new, lower-paid employees concurrent with the fraud, unlike firms in distress which tend to contract. When the fraud is revealed, firms shed workers, unwinding this abnormal growth and resulting in most of the negative wage consequences. Wage outcomes are particularly unfavorable in thin labor markets, and lower-wage employees, though unlikely to have perpetrated the fraud, experience more severe wage losses compared to higher-wage employees.

中文翻译：

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欺诈性财务报告及其对员工的后果


我们将美国人口普查数据与 SEC 执法行动相结合，检查员工在财务报告欺诈之前、期间和之后的结果，例如工资和营业额。我们发现，与匹配样本相比，欺诈公司的员工损失了约 50% 的累计年工资，而且欺诈期过后的离职率要高得多。然而，在欺诈期间，欺诈公司的就业增长是积极的；这些公司在欺诈的同时过度建设并雇用新的低薪员工，这与陷入困境的公司往往会收缩。当欺诈行为被揭露后，公司就会裁员，从而消除这种异常增长并导致大部分负面的工资后果。在劳动力市场疲软的情况下，工资结果尤其不利，尽管工资较低的员工不太可能实施欺诈，但与工资较高的员工相比，工资损失更为严重。