The effects of financial crime on firm performance: evidence from Norway
Master thesis

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Date
2019Metadata
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- Master of Science [1550]
Abstract
The purpose of this thesis is to investigate the effect of criminal activity, namely
corruption, on firm performance for Norwegian firms. We investigate whether the
announcement and conviction of corruption has affected the stock prices
negatively, by computing abnormal returns. In addition, we examine a longer-term
effect of corruption on firm performance measured by Return on Assets (ROA).
The stock price reactions reveal minor significant abnormal returns related to the
announcement of corruption, but show overall significant negative abnormal
returns related to the conviction. Furthermore, in our accounting-based method,
we also find evidence of a diminished firm performance of the corrupt companies
after the conviction. We conclude that financial crime does have an effect on firm
performance and identify the effect as negative.
Description
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2019