Article ID Journal Published Year Pages File Type
7414327 Accounting Forum 2017 11 Pages PDF
Abstract
We use data from the United States to assess whether whistleblower laws that protect private employees from retaliation have an impact on corporate fraud. Currently, eighteen states have whistleblower laws that offer such protection. Our analysis indicates that, in these states, a higher awareness of whistleblower laws is associated with a lower state-level conviction rate for corporate fraud. This finding is consistent with the hypothesis that whistleblower laws that cover private employees have a deterrent effect on corporate fraud, and that awareness of the provisions of whistleblower laws plays a key role in determining their effectiveness as a policy tool.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Accounting
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