There is another thing in my opinion. Who would like to invest in the company that cheats? Fraud is some kind of cheating even if it is compliant with some laws and regulations. So you take this personally and You have this negative feeling for it and when most investors do than there is a quick run away from the company’s stock.
With companies that underperform financially is a different story. The company might come up with something that will rocket high they price or some VC or PE investor might come and see some potential in it ,or with so much money chasing after investments due to QE it will be easy for them to restructure their finances or company.