Here’s a silver lining for a sluggish economy: Corporate fraud actually increases during a strong economy when investors are optimistic, according to a study by University of Minnesota Carlson School of Management professors Andrew Winton, Paul Povel, and Rajdeep Singh published in The Review of Financial Studies. The study found that strong markets caused investors to loosen their financial monitoring standards, which could then lead to an increase in corporate fraud. Fraud tends to peak toward the end of a boom and is revealed during the ensuing bust, the authors say. Paradoxically, improving business conditions during the aftermath of a bust may decrease the occurrence of fraud.
—Andrea Wagenknecht
The National Association of Securities Dealers Automated Quotation System (Nasdaq) now offers equity, exchange-traded funds, and index options on its new Options Market. In March,
Nasdaq began allowing investors to buy and sell options in penny increments instead of only nickels or dimes.
Nasdaq hopes this will boost liquidity on the exchange and open it up to more investors.
—A. W.
In Minnesota, women with a college degree (or more) who work full time and year-round make 23 percent less than their male counterparts, according to a report by the American Association of University Women Educational Foundation. Minnesota’s pay equity between the sexes ranks 20th among the 50 states and District of Columbia. Thirty-two percent of Minnesota women have a college degree.
College-educated women in Wisconsin have it better. They’re paid about 20 percent less than men, putting their state at number 7 in pay equity. Which state has the biggest pay gap? Indiana women with degrees earn 31 percent less than do men. Want a bump in salary? Maine has the best pay equity; women there only earn 17 percent less than men. The study examined U.S. Census Bureau data from 2005 through 2007.
—Katie Harholdt
