Benford's Law and the Impact of Director Blockholders

Authors

Ying "Caroline" Chen, St. Mary's University

Files

Publication Date

Spring 2025

Department

Greehey School of Business

Description

This presentation was given by a faculty member on Benford's Law and it's effects on management.

"Benford's Law is a mathematical law which relates to the leading digits of numbers in naturally occurring tables. The probability of the first digit equaling some number d is roughly equal to

𝑃 𝑑 = 𝑙𝑜𝑔10 (1 + 1 𝑑)

The probability of the second digit equaling some number d is roughly equal to

𝑃 𝑑 = σ𝑥=1 9 𝑙𝑜𝑔10 (1 + 1 10𝑥+𝑑)

Durtschi, Hillison, and Pacini (2004) – Analysis using Benford’s Law is primarily useful on sets composed of mathematical combinations of numbers." (Slide 3)

Keywords

Management; Benford's Law; Blockholders; Corporate governance

Digital Publisher

Digital Commons at St. Mary's University

Collection

Research Showcase Presentations - 2025

Format

pdf

Medium

Presentation

City

San Antonio, Texas

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.