Employing a sample of 16,718 firms across 38 countries from 2000 to 2022, we find that ex ante attitudes in society toward dishonest behavior, instead of fraudulent acts, are adequate to provoke firm-level stock price crash risk. Specifically, we document that fraud tolerance in society is positively related to crash risk. The result implies that fraud tolerance promotes managerial opportunistic behavior such as bad news hoarding. Robustness checks show that the result holds after we account for potential issues of endogeneity. We also find evidence implying that ineffective monitoring is a channel connecting fraud tolerance and crash risk. Additional analyses provide results suggesting that fraud tolerance is a persistent behavioral norm unaffected by national culture, including individualism, uncertainty avoidance, and long-term orientation.

中文翻译：

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关于欺诈容忍度与股价崩盘风险之间关系的国际证据


从 2000 年到 2022 年，我们雇佣了 38 个国家/地区的 16,718 家公司的样本，发现社会对不诚实行为的事前态度，而不是欺诈行为，足以引发公司层面的股价崩盘风险。具体来说，我们记录了社会中的欺诈容忍度与碰撞风险呈正相关。结果表明，欺诈容忍度促进了管理机会主义行为，例如囤积坏消息。稳健性检查表明，在我们考虑了潜在的内生性问题后，结果成立。我们还发现证据表明，无效的监控是连接欺诈容忍度和崩溃风险的渠道。其他分析提供的结果表明，容忍欺诈是一种不受民族文化影响的持续行为规范，包括个人主义、不确定性回避和长期取向。