Are Qualified and Experienced Outside Directors Willing to Join Fraudulent Firms and If So, Why?

We thank Clive S. Lennox (editor), two anonymous reviewers, Eli Bartov, Ray Ball, Peter Clarkson, Jeff Coulton, Ed deHaan, the late Dan Dhaliwal, Jere Francis, Bjorn Jorgensen, Jeong-Bon Kim, David Larcker, Stephen Penman, Michael Roberts, Katherine Schipper, Dan Simunic, Stephen Taylor, and Joseph P. Weber for their comments. We also acknowledge comments from attendees at seminars at Deakin University, The University of Adelaide, University of Otago, University of Technology, Sydney, The University of Queensland, La Trobe University, and Griffith University, and participants at the 2015 28th Australasian Finance and Banking Conference (AFBC), the 2016 British Accounting and Finance Association Annual Conference, the 2016 39th European Accounting Association Annual Congress, the 2016 American Accounting Association Annual Meeting, the 2016 World Finance Conference, and the 2017 UTS Australian Summer Accounting Conference.

Supplemental material can be accessed by clicking the link in Appendix B.

Editor's note: Accepted by Clive S. Lennox, under the Senior Editorship of Mark L. DeFond.