摘要：This paper identifies the effect of news reports related to possible involvement in corporate corruption by Brazilian firms on their stock returns in the short term. We employ the event study methodology and consider the period between 2012 and 2019, with a sample of 83 Brazilian firms listed on the B3 and 236 news items. Our main hy- pothesis is supported, since results indicate that this type of event is related to a decrease in stock returns, mainly on the day of disclosure. The results align with the “sand the wheels” perspective. Moreover, we show adjustments in asset price in accordance with the market efficiency theory. We believe that these results can be used by investors in their decision-making process.
关键词：Corruption; Event study; Sand the wheels; Herd effect
