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This chapter investigates the effect of the geographical distance between institutional investors and firms on managers' financial misconduct. The evidence shows that the likelihood of committing financial misconduct by management is positively associated with distance. The distance effect is more prominent for firms with higher information asymmetry and more dedicated institutional investors. In line with the balance between risk-taking and benefit extraction from misconduct, the severity of financial misconduct is higher for firms closer to their institutional investors. Results show that geographical proximity can significantly reduce the cost of information production and facilitate monitoring through access to soft information.

We investigate how firms’ responses to misconduct change when the institutional environment becomes more stringent. Organizational theory offers conflicting perspectives on whether new legislation will increase or decrease pressure on firms to take remedial action following misconduct. The dominant perspective posits that new legislation increases expectations of firm behavior, amplifying pressure on them to take remedial action after misconduct. A more recent perspective, however, suggests that the mere necessity to meet more stringent regulatory requirements certifies firms as legitimate to relevant audiences. This certification effect buffers firms, reducing the pressure for them to take remedial action after misconduct. Using a temporary, largely arbitrary exemption from a key provision of the Sarbanes-Oxley Act, we show that firms that were not required to meet all the regulatory standards of good governance it required became 45% more likely to replace their CEOs following the announcement of an earnings restatement after Sarbanes-Oxley. On the other hand, those that were required to meet all of Sarbanes-Oxley’s provisions became 26% less likely to replace their CEOs following a restatement announcement. Ironically, CEOs at firms with a legislative mandate intended to increase accountability for corporate misconduct shoulder less blame than do CEOs at firms without such legislative demands.

There is a paucity of data available relating to the misconduct of police officers in larger policing agencies, typically resulting in case study approaches and limited insight into the factors associated with serious misconduct. This paper seeks to contribute to the emerging knowledge base on police misconduct through analysis of 28,429 complaints among 3,830 officers in the New York Police Department, between 2000 and 2019.

This study utilized a data set consisting of officer and complainant demographics, and officer complaint records. Machine learning analytics were employed, specifically random forest, to consider which variables were most associated with serious misconduct among officers that committed misconduct. Partial dependence plots were employed among variables identified as important to consider the points at which misconduct was most, and least likely to occur.

Prior instances of serious misconduct were particularly associated with further instances of serious misconduct, while remedial action did not appear to have an impact in preventing further misconduct. Inexperience, both in rank and age, was associated with misconduct. Specific prior complaints, such as minor use of force, did not appear to be particularly associated with instances of serious misconduct. The characteristics of the complainant held more importance than the characteristics of the officer.

The ability to analyze a data set of this size is unusual and important to progressing the knowledge area regarding police misconduct. This study contributes to the growing use of machine learning in understanding the police misconduct environment, and more accurately tailoring misconduct prevention policy and practice.

Identifies seven types of crises that managers face, these range from natural disasters to technology failure and encompass crises provoked by external confrontation or direct acts of malevolence. Lists out seven types of crisis: natural disasters; technological disasters; crises of confrontation; acts of malevolence; misplaced management values; acts of deception; and management misconduct. Concludes senior management (managers at all levels and in all disciplines) need to be aware of potential problems to enable prevention or mitigation of such crises.

This study aims to examine the risk-resistant role of environmental, social and governance (ESG) performance in the capital market, focusing on an organizational standpoint. Furthermore, it aims to offer management decision advice to companies seeking protection against stock market risks. Conclusions obtained through this research have the potential to enrich the economic consequences of ESG performance, provide practical implications for enhancing corporate ESG performance, improving corporate information quality and stabilizing capital market development.

Based on the data of Chinese A-share listed companies from 2009 to 2020, this study examines the risk-resistant function of ESG performance in the capital market. The impact of ESG performance on management behavior is analyzed from the perspective of organizational management and the three mechanisms of pre-event, during the event and post-event.

This paper demonstrates that companies that effectively implement ESG practices are capable of effectively mitigating risks associated with stock price crashes. Heterogeneity analysis reveals that the inhibitory effect of ESG performance on stock price crash risk is more pronounced in nonstate-owned enterprises and enterprises with higher levels of marketization. After controlling for issues such as endogeneity, the conclusions of this paper are still valid. The mechanism analysis indicates that ESG performance reduces the risk of stock price crash through three paths of organizational management: pre-event, during the event and post-event. That is, ESG performance plays the role of restraining managers’ opportunistic behavior, reducing information asymmetry and boosting investor sentiment.

This paper provides new insights into the relationship between ESG performance and stock price crash risk from an organizational management perspective. This study establishes three impact mechanisms (governance effect, information effect and insurance effect), offering a theoretical basis for strategic corporate decisions of risk management. Additionally, it comprehensively examines the contextual differences in the role of ESG performance, shedding light on the specific domains where ESG practices are influential. These findings offer valuable insights for promoting stable development in the capital market and fostering the healthy growth of the real economy.

Whistleblowing is an important factor in preventing corruption and fraud in organizations. There is a law to promote whistleblowing practices, but the negative subsequent effect of whistleblowing demotivates the reporting of unethical behaviors. Thus, it is important to identify the factors that motivate an employee to exercise whistleblowing in an organization. Therefore, the purpose of this paper is to examine whether the personal factor of job satisfaction and organizational factors such as fair treatment as well as cooperativeness contribute to the whistleblowing practice in an organization.

This study collected primary data based on a questionnaire survey from 73 respondents of the seven top most government linked companies (GLCs) in Malaysia. The data are analyzed using descriptive statistics, factor analysis, and cross-sectional regression.

The findings of the study reveal that only fair treatment is statistically significant and positively related to the whistleblowing practice. The findings imply that if employees perceive that the organization provides fair treatment in terms of career advancement, awards, training, performance appraisal, job assignment, and pay increases, they would tend to report wrongdoing activities to protect the image of the organization.

The findings of the study will help the policy makers to ensure better working environment and accountability in the public sector of Malaysia and other similar countries.

This is an original study based on primary data to examine the current practices of whistleblowing and its relationship with the practices of job satisfaction, fair treatment, and cooperativeness in the GLCs of Malaysia.

To present qualitative data illustrating how some of the largest law enforcement agencies in the USA use risk management in their efforts to control police liability.

To explore this topic, two main data sources were utilized: telephone interviews with 354 law enforcement agencies identified the prevalence of the use of risk management by police agencies; and survey data from police agencies provided descriptive information about the roles, duties, and placement of risk managers within each police organization.

Telephone interviews revealed that 14 of the 354 (0.039 percent) law enforcement agencies identified risk management as one of several tools they use to control police‐related liability within their organizations. This finding is surprising, given the increase in costs associated with settlements/payouts for police‐involved litigation and liability claims over the past few decades.

Future research should identify the reasons why police agencies choose not to use risk management in their police liability management efforts. In addition, future research should explore how the characteristics of city government and/or political culture are associated with the use of risk management by law enforcement agencies.

This paper can serve as a basic resource for police scholars and practitioners, city/county attorneys, risk managers, and various other city/county agents that are interested in learning about risk management as a way to manage police liability.

This paper presents the first national study of risk management in police agencies in the USA.

The purpose of this paper is to contribute to understanding of crisis communication application and theory by analyzing online reactions of discussion board participants to assess the effectiveness of an apology issued online.

This paper uses a content analysis of naturally‐occurring online reactions to an apology issued as a crisis response strategy. The Janis‐Fadner Coefficient of Imbalance was used to quantify the magnitude of negative and positive reactions to the apology.

Most posts indicated acceptance of the apology and positive purchase intentions, thus confirming its effectiveness in managing the crisis as prescribed in Situational Crisis Communication Theory. Analysis of rejection reactions provided insights into additional actions crisis managers might take in this situation and how organisations might make their crisis communication more interactive in an online environment.

The study is limited by the focus on people responding to the apology online. It does show the potential value of online responses as a data source for crisis communication research.

The paper demonstrates the utility of the research method for future studies designed to monitor and evaluate the effectiveness of crisis communication strategies. Real time monitoring may signal if the response strategy is effective and, if not, reveal stakeholder concerns that should be addressed in follow‐up responses.

The paper provides insight into how online comments can be used to evaluate reactions to apologies used in a crisis. The method can be helpful when crisis managers have access to online reactions to their crisis communication.

This paper aims to challenge some of the underlying concepts about causation of fraud and in doing so enriches knowledge and insight into the management of fraud.

This study is a part of fieldwork carried out in Indonesia.

Organisational fraud is an exceptional type of crime. Hence, the underlying antecedents and consequences of fraud in organisation are distinct from other crimes, especially violent crimes. The underlying logic in criminological and sociological theories and literature cannot fully explain the causal factors of fraud in the organisation. This leads to a theoretical discussion about the reconstruction of the fraud theory. Implications and suggestions for further studies are discussed in this study.

This study provides a new understanding of fraud and its antecedents and consequences. In doing so, it examines the long-standing debate in criminology and sociology about the theories concerning crime causation, as these areas provide the underlying logic of fraud theory.

This study aims to investigate the tendency for firms, exhibiting an entrepreneurial spirit in their growth strategies, to engage in misconduct within the context of China's rapidly developing economy. The authors also examine how this relationship is influenced by governance mechanisms, specifically management shareholding and executive functional diversity. Furthermore, the authors explore the mediating roles of organizational complexity and performance pressure in linking entrepreneurial growth to firm misconduct. This research provides a novel perspective for understanding the impact of entrepreneurial growth on corporate ethical risks, and offers practical insights for maintaining ethical standards in firms during their pursuit of growth.

This study focuses on publicly traded, mature companies that exhibit an entrepreneurial inclination in their growth strategies, demonstrating entrepreneurial vigor through activities such as product innovation and market expansion. This exploration incorporates both theoretical and empirical approaches, scrutinizing A-share listed companies in China from 2008 to 2019. To validate the robustness of this study's findings, the authors have applied diverse methodologies such as propensity score matching, classification regression, and alternative indicator analysis.

This study found that the entrepreneurial growth-oriented strategy is positively related to firm misconduct. It also uncovers that governance mechanisms like management shareholding and executive functional diversity moderate this relationship. Moreover, organizational complexity and performance pressure partially mediate the relationship between an entrepreneurial growth strategy and firm misconduct.

For instance, more detailed categorization of corporate misconduct, based on punishment severity, could be explored. Additional characteristics like age, education, gender, and team/board diversity could help further understand the relationship between entrepreneurial growth strategy and misconduct. By addressing these limitations and exploring further avenues for research, the authors can deepen the understanding of this relationship and provide valuable insights for firms seeking to mitigate potential risks.

First, for regulators, shareholders, creditors and investors, knowing and understanding the relationship between growth-oriented strategies and corporate violations is helpful for them to scientifically evaluate the potential risks that may exist in the company, and can also carry out differentiated supervision on the company based on different types of company-oriented strategies. Second, when designing the corporate governance mechanism, listed companies should fully consider the role of management shareholding. Finally, executives should treat cross-functional experience dialectically, especially in growth oriented strategic companies.

This research provides a novel perspective for understanding the impact of entrepreneurial growth on corporate ethical risks, and offers practical insights for maintaining ethical standards in firms during their pursuit of growth.

This study stands out by examining the influence of entrepreneurial growth strategy on firm misconduct, thus enhancing previous studies that primarily centered on entrepreneurial start-ups. The authors offer a nuanced comprehension of the potential risks intrinsic to corporate entrepreneurship and highlight the crucial role of efficient governance structures in curbing corporate misbehavior while fostering entrepreneurial growth.