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Kuvvet’s paper discusses extreme observations in research on financial misconduct and also examines the robustness of the findings in Call, Martin, Sharp, and Wilde (2018, Journal of Accounting Research) (hereafter CMSW) to the removal of these observations. The collective evidence in CMSW does not support Kuvvet’s claims that the findings in CMSW are driven solely by extreme outcomes of enforcement actions. Other claims offered by Kuvvet reflect a misunderstanding of both the enforcement action setting and the whistleblower designations in CMSW.
This article is a response to Are a Few Huge Outcomes Distorting Financial Misconduct Research? by Emre Kuvvet (EJW, March 2019).