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15 U. Pa. J. Bus. L. 797 (2012-2013)
Arthur Andersen and the Myth of the Corporate Death Penalty: Corporate Criminal Convictions in the Twenty-First Century

handle is hein.journals/upjlel15 and id is 809 raw text is: ARTHUR ANDERSEN AND THE MYTH OF THE
Gabriel Markoff*
The conventional wisdom states that prosecuting corporations can
subject them to terrible collateral consequences that risk putting them out
of business and causing massive social and economic harm. According to
this viewpoint, which has come to dominate the literature following the
demise of Arthur Andersen after that firm's prosecution in the wake of the
Enron scandal, even a criminal indictment can be a corporate death
penalty. The Department of Justice (DOJ) has implicitly accepted this
view by declining to prosecute many large companies in favor of using
criminal settlements called deferred prosecution agreements (DPAs). Yet,
there is no evidence to support the existence of the Andersen Effect and
the much-hyped corporate death penalty.      Indeed, no one has ever
empirically studied what happens to companies after conviction. In this
Article, I do just that. Using the database of organizational convictions
made publicly available by Professor Brandon Garrett, I find that no
*Law Clerk to the Honorable Gregg Costa, United States District Judge for the Southern
District of Texas (2012-2013). J.D., Class of 2012, The University of Texas School of
Law, All views and opinions expressed within are my own and should not be taken to
reflect the position of any other individual or entity. I wish to extend my thanks to Barry
McNeil and Stacy Brainin, for their invaluable instruction; to Brandon Garrett, for his
advice, freely given, and his extraordinary dataset, generously shared; to Mike Koehler, for
his assistance in navigating the submissions process; and to the Honorable Gregg Costa, for
his encouragement and guidance. To Tansy Woan and the staff of the University of
Pennsylvania Journal of Business Law, I thank you for your excellent work. Thanks go also
to Keith Cohan, Monica Gaudioso, Alex Hughes, Lisa Kinzer, Nicole LeFave, Josh
Packman, George Padis, Drew Pennebaker, Jeff Quilici, Sean Thompson, Kate Wagner,
Colin Watterson, and Eric Werlinger, who know what they did. Finally, to Ein: All my

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