... at other firms compared to non-exposed insiders. The deterrent effect is stronger when a fellow insider is convicted, and is similarly significant both pre- and post-SOX. Following the enforcement event, exposed insiders do not trade less frequently, but do trade significantly fewer shares per trade...

... release data, and Khrystyna Bochkay for providing MD&A tone data. Editor's note: Accepted by Brad A. Badertscher. 7 2018 10 2019 2020 real earnings management earnings management deterrence litigation corporate governance Real earnings management (REM) refers...