Scandals suggest standards have slipped in corporate America

Then there is the opioid epidemic, which involves not only Purdue Pharma, the maker of OxyContin, but also, according to a lawsuit by New York’s attorney-general, other firms including McKesson and Johnson & Johnson. Take a sample of ten big American listed firms involved in controversial episodes: their median share price has lagged behind the stockmarket by a bearable 11% since the event, after adjusting for dividends. Tort costs born by firms are equivalent to about 2% of a year, higher than in other countries.

Source: www.economist.com