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1 – 10 of over 2000
Article
Publication date: 19 February 2024

Adam W. Du Pon, Andrea M. Scheetz and Zhenyu “Mark” Zhang

This study aims to examine the determinants of Foreign Corrupt Practices Act (FCPA) violations and consequences of FCPA enforcements.

Abstract

Purpose

This study aims to examine the determinants of Foreign Corrupt Practices Act (FCPA) violations and consequences of FCPA enforcements.

Design/methodology/approach

This paper uses publicly available data from Compustat, I/B/E/S and Thomson Reuters databases, combined with Securities and Exchange Commission (SEC) and Department of Justice (DOJ) cases, to extract insights on FCPA violations and enforcements using econometric approaches.

Findings

The main determinants of FCPA violations appear to be firm size, multinational structure, country corruption and Sarbanes-Oxley Act control weaknesses. Traditional misreporting risks (F-score and M-score) do not predict FCPA violations. This study discovers significant differences between FCPA violations by motivation, as in, sale generation, rent extraction or cost evasion. Bribes motivated by sale generation or rent extraction are partially driven by the extent of the firm’s global operations, whereas bribes motivated by cost evasion relate to internal influences. This study also finds that enforcement is more salient for criminal violations (DOJ enforcement), compared to civil violations (SEC enforcement).

Research limitations/implications

This research provides new insights into the determinants of FCPA violations while underscoring the need for effective measures to combat bribery and promote ethical business practices. This research contributes to the ongoing efforts to curtail bribery, offering valuable insights into the characteristics of firms more likely to engage in bribery and contexts in which these activities occur. It provides critical implications for regulatory bodies, highlighting the differential responses of firms to varying types of enforcement, namely, criminal versus civil, as the authors observe greater decreases in internal control weaknesses following DOJ enforcement compared to SEC enforcement.

Practical implications

For enforcement agencies, the findings underscore the importance of rigorous criminal enforcement against FCPA violations, highlighting the improved control environments prompted by DOJ actions. Managers will find this research relevant, as it demonstrates that a firm’s entry into international markets substantially elevates the risk of its representatives engaging in bribery with foreign officials. In addition, the results are of interest to regulators, revealing that the underlying motivations driving a firm’s activities can significantly alter the factors to consider that might lead to an FCPA violation.

Originality/value

This paper is the original work of the authors and explores the determinants and consequences of FCPA violations and enforcement actions since 2002. To the best of the authors’ knowledge, it is the first to explore bribe determinants by their motive and documents industry-wide benefits arising from criminal enforcement.

Details

Journal of Financial Crime, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 28 February 2024

Ammad Ahmed and Atia Hussain

In this study, the authors investigate a pressing concern: how auditors react to their clients facing repercussions due to environmental violations. More specifically, this study…

Abstract

Purpose

In this study, the authors investigate a pressing concern: how auditors react to their clients facing repercussions due to environmental violations. More specifically, this study aims to examine how environmental engagements, which carry potential risks and liabilities, influence auditors’ decision-making and fee structure.

Design/methodology/approach

This study uses unique, reliable and actual violation data from the United States Environmental Protection Agency (US-EPA) from 2000 to 2015, focusing on clients involved in environmental violations that led to legal prosecution and penalties and those who subsequently engaged in voluntary supplemental environmental projects (SEPs). The authors use the ordinary least squares method to test the authors’ main research question and later use propensity score matching and alternate data source (ASSET4) to check the robustness of the authors’ results.

Findings

The authors find that firms with environmental violations are more susceptible to auditor resignation. Moreover, the environmental violator firms that maintain their engagement with auditors pay significantly higher audit fees compared to non-environmental violator firms. Furthermore, these environmental violator firms also face extended audit report delays and take longer to appoint a new auditor.

Originality/value

This study provides an additional consequence of environmental violations, namely, increased chances of auditor resignation and higher audit fees, alongside the penalties imposed by the US-EPA. Moreover, the authors’ findings position environmental violations and participation in SEPs as important factors in auditors’ business risk assessment.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 21 December 2023

Nan Xu, Chunyong Tang, Chengchuan Yang and Yanzhao Lai

Drawing on cognitive appraisal theory, this study aims to explore the indirect effect of work/family boundary violations on teleworkers’ counterproductive work behavior (CWB). In…

Abstract

Purpose

Drawing on cognitive appraisal theory, this study aims to explore the indirect effect of work/family boundary violations on teleworkers’ counterproductive work behavior (CWB). In addition, it examines the moderating role of involuntary teleworking in this context.

Design/methodology/approach

Based on the diary study method, this study used 543 questionnaires collected from 122 teleworkers in China.

Findings

The findings indicate that working time demands mediate the relationship between work boundary violations and teleworker CWB, and threats to family roles mediate the relationship between family boundary violations and teleworker CWB. In addition, involuntary teleworking positively moderates the relationship between work boundary violations and working time demands, as well as the relationship between family boundary violations and threats to family roles.

Originality/value

The study makes several valuable contributions to the extant literature. First, it enhances research on the antecedents of teleworker CWB. Second, by introducing two mediating variables corresponding to two types of boundary violations, the paper provides new insights and a fresh understanding of the effects of boundary violations in teleworking situations. Third, by considering the moderating role of involuntary teleworking, this research adds to the current knowledge on the impact of discussing boundary violations solely on teleworking or traditional office days.

Details

International Journal of Conflict Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 14 February 2023

Sheng Yao, Siyu Wei and Lining Chen

Existing studies have shown that all kinds of audit risks greatly affect audit pricing for accounting firms. However, it is still unclear whether environmental risks caused by…

Abstract

Purpose

Existing studies have shown that all kinds of audit risks greatly affect audit pricing for accounting firms. However, it is still unclear whether environmental risks caused by environmental violations lead to a high audit fee. This study aims to investigate whether accounting firms raise audit fees after client firms have violated environmental regulations or have been punished for such violations.

Design/methodology/approach

This study selects listed firms with environmental violations between 1994 and 2018 as the treatment sample and match the treatment group with a control group of firms from the same industry, of similar asset size and with no environmental violations for the same time period. Then, this study constructs a difference-in-difference (DID) model to explore the impact of firm environmental violations (or punishment for environmental violations) on the audit pricing.

Findings

This study finds that accounting firms tend to raise audit fees after client firms have violated environmental regulations or have been punished for such violations, and this increasing effect is different due to environmental regulation intensity, regional span and internal control defects. Further evidences show that environmental violations influence audit fees through financial restatement, whereas environmental punishments impact audit fees through earnings management and risk-taking.

Originality/value

This study enriches the literature on determining factors of audit fees and economic consequences of environmental violations and provides empirical supports to understand the pricing behavior of accounting firms.

Details

Managerial Auditing Journal, vol. 38 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 15 February 2023

Dominic Kelly and Jonathan Potter

Professional boundary violations – intentional blurring, minimising or exploiting of institutions’ ethical and legal frameworks – have the potential to cause significant harm to…

Abstract

Purpose

Professional boundary violations – intentional blurring, minimising or exploiting of institutions’ ethical and legal frameworks – have the potential to cause significant harm to prisoners, staff, prison systems and the public. There has been little empirical research on the nature, extent and impact of boundary violations in UK prisons. The purpose of this paper is to synthesise and critically review studies which have sought to explore, measure and predict boundary violative behaviour, with a view to direct future research and inform prison policies and practices.

Design/methodology/approach

Four internet-based bibliographic databases were used for this review. Inclusion and exclusion criteria were applied. Twenty studies published between 2001 and 2022 were included in this review.

Findings

There is a lack of comprehensive self-report measures around prison boundary violations. Staff and prisoner characteristics, as well as prison-specific conditions, are linked with boundary violations. Staff training, improved working conditions and amnesty programmes as well as bolstered surveillance and restricted cross-sex staff deployment were among recommendations to reduce boundary violations. “Insider” researchers offer insight and access opportunities, but they also pose ethical implications. Current studies have research design, participant sampling and measurement scale limitations which compromises the applicability of findings. Prisons need robust policies on defining, reporting, punishing and recovering from boundary violations. Collaboration between prison institutions and academics, using individuals with experience of both professions, is essential to understand, predict and reduce boundary violations.

Originality/value

To the best of the authors’ knowledge, this is the first review of empirical studies on professional boundary violations in prison.

Details

Journal of Criminal Psychology, vol. 13 no. 3
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 1 February 2022

Junying Liu, Yuqing Wang and Zhixiu Wang

This research aims to build a three-tiered driver system that entices contractor rule violations and explores the importance and the relationships among these drivers, hence…

Abstract

Purpose

This research aims to build a three-tiered driver system that entices contractor rule violations and explores the importance and the relationships among these drivers, hence providing theoretical support for the contractor rule violations governance.

Design/methodology/approach

A literature review based on fraud diamond theory identified drivers from Pressure, Opportunity, Rationalization and Capability that drive contractor rule violations. In the Chinese context, through feedback, discussion and analysis of semistructured interviews with ten experts, an improved three-tiered driver system was drafted. Based on this system, a survey was conducted and scored with experts to provide the data for this research. The decision-making trial and evaluation laboratory (DEMATEL) method was used to determine relationships and influences between factors, and the DEMATEL-based analytic network process method was used to weigh these factors.

Findings

This paper systematically studied the drivers of contractor rule violations, specifically, the results showed that pressure had an important driving effect across the driver system, and those five factors – poor cultural atmosphere, weak internal control, prior experience, moral disengagement and information asymmetry – had the most influence on contractor rule violations. The results also indicated the strong effect pressure has on enticing rule violations and revealed that culture atmosphere and internal company governance played crucial roles in the occurrence of rule violations.

Practical implications

This study provided construction practitioners with a robust tool to analyze the drivers of contractor rule violations. The rule violation drivers in the construction practice scenes identified in this study can provide more direct and effective violation-related guidance for contractors, regulators and the industry.

Originality/value

Based on the new perspective of fraud diamond, this paper systematically bulit a three-tiered driver system combining theory with practice. This study contributed to understand the driver mechanism of contractor rule violations especially the importance of internal factors of contractors, which provided theory reference for compliance governance of construction industry.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 22 January 2024

Hao Chen, Lynda Jiwen Song, Wu Wei and Liang Wang

The purpose of this study is to test the mechanism of visionary leadership on subordinates' work withdrawal behavior through cognitive strain and psychological contract violation…

Abstract

Purpose

The purpose of this study is to test the mechanism of visionary leadership on subordinates' work withdrawal behavior through cognitive strain and psychological contract violation, and also to reveal the possible dark side of visionary leadership. The moderation effects of subordinates' facades of conformity and leader behavioral integrity in the cognition–affect dual-path process are also discussed.

Design/methodology/approach

This study conducted a three-wave longitudinal survey. The data were collected from 574 employees and their superiors in several Chinese enterprises. The authors used Mplus 7.4 and adopted a bootstrapping technique in the data analysis.

Findings

Visionary leadership has positive effects on cognitive strain and psychological contract violation; cognitive strain and psychological contract violation mediate the relationship between visionary leadership and work withdrawal behavior, respectively. Subordinates' facades of conformity and leader behavioral integrity moderate the positive effects of visionary leadership on cognitive strain and psychological contract violation, as well as the indirect effect of visionary leadership on subordinates' work withdrawal behavior through cognitive strain and psychological contract violation.

Originality/value

This study reveals the underlying mechanism of visionary leadership's negative impact on job outcome through the cognition and affective reaction of subordinates to visionary leadership, and broadens the scope of visionary leadership research. It also provides some practical suggestions on how to transmit the organizational vision effectively and reduce subordinates' work withdrawal behavior.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 23 November 2023

Hao Chen, Wu Wei, Liang Wang and Jiaying Bao

The purpose of this study is to examine the mechanism of benevolent leadership on employee cheating behavior through two paths – employee uncertainty and perceived acceptability…

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Abstract

Purpose

The purpose of this study is to examine the mechanism of benevolent leadership on employee cheating behavior through two paths – employee uncertainty and perceived acceptability of norm violation – and also reveal the possible dark side of benevolent leadership. Meanwhile, the moderating effects of leader behavioral integrity in the cognition dual path process are also discussed.

Design/methodology/approach

This study invites 383 employees and their superiors in seven Chinese enterprises as the research objects and conducts a paired survey at three time points, and then Mplus 7.4 software is used to analyze the empirical data.

Findings

The results are shown as follows. Benevolent leadership plays a positive role on uncertainty and perceived acceptability of norm violation. Uncertainty and perceived acceptability of norm violation mediate the relationship between benevolent leadership and cheating behavior, respectively. Leader behavioral integrity moderates the positive role of benevolent leadership on uncertainty and perceived acceptability of norm violation. Leader behavioral integrity moderates the indirect effect of benevolent leadership on employees' cheating behavior through uncertainty and perceived acceptability of norm violation.

Originality/value

This study reveals the mechanism behind the negative role of benevolent leadership through the cognition reaction of employees to benevolent leadership and broadens the research scope of benevolent leadership. Meanwhile, it provides some practical inspiration for leaders to effectively use the benevolent leadership style and restrain employees' cheating behavior.

Details

Journal of Organizational Change Management, vol. 37 no. 1
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 22 September 2023

Talat Islam, Farheen Rizvi, Waqas Farooq and Ishfaq Ahmed

The practice of cronyism is a pervasive problem for most businesses and a great hindrance for employees, but empirical literature on its outcomes is scant. In light of such gaps…

Abstract

Purpose

The practice of cronyism is a pervasive problem for most businesses and a great hindrance for employees, but empirical literature on its outcomes is scant. In light of such gaps, the objective of this study is to examine the relationship between organizational cronyism and employees' silence behavior through the mediating role of felt violation and the moderating role of continuance commitment.

Design/methodology/approach

A time-lagged cross-sectional survey comprising 226 respondents is carried out in a metropolitan city of a developing country (Lahore, Pakistan). The respondents were selected using the convenience sampling technique.

Findings

The findings reveal that organizational cronyism influences employees' silence (acquiescent and quiescent) both directly and indirectly (via felt violation). However, continuance commitment was noted to work as a boundary condition only between felt violation and quiescent silence.

Research limitations/implications

Although the study deals with common method bias by collecting data in two waves, it may restrict causality. The findings not only have implications for the academicians, but also contribute to the conservation of resources theory. This study suggests organizations develop and implement a comprehensive intervention strategy that focuses on both prevention and damage control as a result of organizational cronyism.

Originality/value

Drawing upon the conservation of resources theory, this study adds value to the literature by empirically investigating the outcomes of cronyism at work. Moreover, the outcomes and mechanisms under consideration have largely been ignored in the literature.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 November 2023

Mudit Shukla, Divya Tyagi and Sushanta Kumar Mishra

Based on the conservation of resources theory, this study aims to investigate if the fear of career harm influences employees’ knowledge-hoarding behavior. The study further…

Abstract

Purpose

Based on the conservation of resources theory, this study aims to investigate if the fear of career harm influences employees’ knowledge-hoarding behavior. The study further examines felt violation as the predictor of employees’ fear of career harm. The study also explores leader-member exchange as a boundary factor influencing the effect of felt violation on employees’ fear of career harm.

Design/methodology/approach

The data were collected in three waves from 402 professionals working in the information technology industry in Bengaluru, popularly known as the Silicon Valley of India.

Findings

The findings indicate fear of career harm as a critical predictor of employees’ knowledge-hoarding behavior. Moreover, felt violation indirectly impacts knowledge-hoarding behavior by enhancing employees’ fear of career harm. The adverse effect of felt violation was found to be stronger for employees with poor-quality relationships with their leaders.

Practical implications

The study carries important managerial implications as it uncovers the antecedents of knowledge hoarding. First, the human resource department can devise specific guidelines to ensure that the employees are treated the way they were promised. They can also organize training opportunities and mentoring so that the employees’ performance and growth do not get hampered, even if there is a violation. Moreover, such cases should be addressed in an adequate and expedited manner. More significantly, leaders can compensate for the failure of organizational-level levers by developing quality relationships with their subordinates.

Originality/value

The study advances the existing literature on knowledge hoarding by establishing a novel antecedent. Furthermore, it identifies how the employee-leader relationship’s quality can mitigate the adverse effect of felt violation.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

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