Manufacturing and Fraud
Adam W. Du Pon et al.
We examine fraud from an industry competition perspective, oriented from inventory theory. We find that fraud occurs among manufacturers more than nonmanufacturers and that the association between price competition and fraud is significantly more pronounced in the manufacturing sector. Aggregating inventory and cash flow patterns to the industry level, we report that industry inventory imbalance rates, from either excessive stockpiling or inventory leanness, associate with increased future price