FCPA Probes - Why Investors Should Care

John P Gavin CFA's picture

This video takes you through why investors should care a lot more about FCPA probes than many do now.  

Public company disclosures of investigations pertaining to potential violations of the US Foreign Corrupt Practices Act (FCPA) are widely perceived as without consequence, and therefore typically ignored by many investors.   That thinking is misguided for the following reasons:

  1. A disclosed FCPA probe represents a judgment on the part of management that the company has a risk that is material to the investment decision making process. 
  2. It can indicate accounting fraud.
  3. It can hurt operations.

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