期刊
JOURNAL OF FINANCIAL ECONOMICS
卷 139, 期 3, 页码 800-831出版社
ELSEVIER SCIENCE SA
DOI: 10.1016/j.jfineco.2020.10.002
关键词
FINRA Rule 2080; Expungement; Broker misconduct; Recidivism; BrokerCheck
资金
- Stanford Institute for Economic Policy Research
- Arnold Foundation
The study found that the expungement process predicts future misconduct to some extent, as brokers with prior expungements are more likely to engage in new misconduct. Using an instrumental variable based on the random assignment of arbitrators, it was shown that brokers who receive expungement are more likely to reoffend. Furthermore, successful expungements can improve long-term career prospects for brokers.
We examine a controversial process, known as expungement, which allows brokers to remove evidence of financial misconduct from public records. From 2007 to 2016, we identify 6660 expungement requests, suggesting that brokers attempt to expunge 12% of the allegations of misconduct reported by customers and firms. When these requests are adjudicated on the merits, arbitrators approve expungement 84% of the time. We show that expungements significantly predict future misconduct; brokers with prior expungements are 3.3 times as likely to engage in new misconduct as the average broker. Further, using an instrumental variable based on the random assignment of arbitrators, we present evidence that brokers who receive expungement are more likely to reoffend than brokers who are denied expungement. We also show that successful expungements improve long-term career prospects. (C) 2020 Elsevier B.V. All rights reserved.
作者
我是这篇论文的作者
点击您的名字以认领此论文并将其添加到您的个人资料中。
推荐
暂无数据