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The purpose of the research is to determine the essence and notion of economic violation of law and their varieties, and to determine the reasons that lie in the basis of this negative social phenomenon. The authors use the philosophical law of integrity and struggle of contradictions and rather-legal, historical and legal, and formal and legal methods of scientific cognition. Such laws of dialectics and transition of quantitative changes into qualitative changes, negation of negation, and others are used. Signs and types of economic violations of law are analyzed and their predetermination by the conflict character of economic relations is noted. Comparison of economic violations of law that are peculiar for administrative and market models of economy is performed. The universal character of economic relations as objects of legal protection is shown. Classification of economic violations of law, based on the level of their public danger and spheres of distribution, is provided. Special attention is paid to civil and legal violations of law as a variety of economic violations of law, based on not anti-social settings of the subject but conflict with the borrowed system of values, which is alien to most members of society. The notion “economic violation of law” is of the collective character and includes illegal actions regarding economic relations, and the latter are of the conflict character due to different interests of subjects, the existing competition, and striving for obtaining profit. Economic violation of law is an illegal form of solving the existing conflict, which leads to application of measures of legal responsibility. The causes of economic violations of law could be overcome by implementation of the values and ideals of justice in the legal norms. They should be based on historical, cultural, spiritual, and legal traditions. All that is imposed artificially is destined for rejection and creation of new conflicts, including economic violations of law.

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

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.

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).

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.

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.

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.

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.

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.

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.

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.

This study examines how creditor interventions after debt covenant violations affect corporate tax avoidance. Using a regression discontinuity design, we find that creditor interventions increase borrowers' tax avoidance. This effect is concentrated among firms with weaker shareholder governance before creditor interventions and among those with less bargaining power during subsequent debt renegotiations. Our results indicate that creditors play an active role in shaping corporate tax policy outside of bankruptcy.

With the rise of employer-promulgated mandatory employment arbitration, scholars have become concerned that these policies may reduce the economic viability of lower value employment claims. Of particular worry are claims made under the Fair Labor Standards Act since the FLSA does not include punitive damages. This study empirically tests the relationship between 368 Fortune 1000 companies’ employment arbitration policies and their wage and hour violations discovered during the Department of Labor inspections. Surprisingly, firms that used arbitration were found to have fewer violations and lower back wages for those violation compared to firms that did not use arbitration. This suggests that viewing arbitration merely as a cost-reduction tool may cast the practice too narrowly and instead it may be part of a larger conflict management system that seeks to address conflict at the earliest possible stage.

Purpose — The main aim of the paper is to study the occurrence and connections of different pre-insolvency violations of law on the example of Estonian firms.Design/methodology/approach — The study is based on the whole population financial data of Estonian bankrupt firms and all publicly available court judgments about firm insolvencies from the period 2002–2009. Three types of violations have been considered: non-submission of annual reports, violations of net asset requirement and elements of criminal offence.Findings — The paper shows that non-submission of annual reports is common for insolvent firms but its occurrence varies through insolvency years and types. A similar finding can be attributed to net asset requirement violations. Elements of criminal offence are also frequent, but their occurrence is not different through insolvency years, industries and firm size groups. Elements of criminal offence and net asset requirement violations are not likely to exist together. Although medians of several pre-insolvency financial variables are significantly different in case of firms where criminal offence elements were found, they are not useful for offence prediction.Research limitations/implications — Statistical analysis limitations of the current study are mainly associated with the content of the data, because the dataset itself covers the whole population of publicly available information. The application of some results in different countries might be limited because of differences in legislation and its implementation. The study outlines novel information about and connections of different pre-insolvency violations which could be applied for relevant theory-building or more elaborate empirical research in the future.Practical implications — The study can be used by managers, owners, creditors and other stakeholders of firms to improve detection of possible pre-insolvency violations.Social implications — Regulators and regulation implementers can make use of the study when considering a change in legal framework or in its practice.Originality/value — The paper shows the presence of selected pre-insolvency violations on an extensive dataset. Previous studies have mainly been theoretical, qualitative or using small datasets.

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.

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

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.

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.

This paper aims to help auditors manage the risk of Foreign Corrupt Practices Act (“FCPA”) violations of the companies that they audit, particularly those with operations in Latin America.

First, the paper describes the relevant provisions of the FCPA. Second, it identifies the common schemes and transactions associated with heightened risk of FCPA liability in Latin America and provides recommendations to minimize this risk. Third, it discusses the responsibilities of auditors under U.S. securities laws and regulations with respect to the FCPA violations of their clients. Finally, it describes the sanctions that auditors could face if they fail to fulfill their responsibilities regarding these FCPA violations. The paper is based on data collected from various documents including laws, cases, accounting and auditing standards, litigation releases, press releases, deferred prosecution agreements, and enforcement actions.

Auditors have a responsibility under Section 10A(a) of the Exchange Act to design procedures that provide reasonable assurances of detecting the FCPA violations of their clients, which are illegal acts with direct and material effects on the financial statements. In addition, auditors have a responsibility under Section 10A(b) of the Exchange Act to report the violations of the FCPA that they detect during the audit to the appropriate level of management. If management does not take the necessary remedial steps, auditors must report FCPA violations to the U.S. Securities and Exchange Commission. In order to reduce their FCPA-related liability and fulfill their responsibilities under U.S. securities laws and accounting standards, auditors should closely scrutinize transactions with a high risk of FCPA liability. An analysis of FCPA cases occurring in Latin America reveals six categories of transactions with heightened FCPA risk.

While there is much literature regarding a company’s compliance with the FCPA, there has not been much literature about the auditor’s responsibilities with respect to the FCPA violations of their clients. This paper attempts to start bridging this gap by providing guidance to auditors regarding their responsibilities to detect and report FCPA violations.

Framed by the intersectionality perspective and results from prior research, we examined the effects of race/ethnicity, gender, probation violations, and type of violation on juvenile justice case outcomes in a Mid-Atlantic state.

Bivariate and multivariate analyses in the form of logistic regression were used to assess the extent race and ethnicity, gender, probation violations, and the type of violation, individually and in combination, impact case outcomes.

The findings indicate that the race/ethnicity of the youth, his or her gender, and whether involved in a probation violation and to some degree the type of violation, individually and in some cases, jointly, effect juvenile justice decision making. These relationships often involve receiving both harsh and lenient outcomes. We interpret the results as evidence that stereotyping plays out differently when race/ethnicity and gender intersect.

The study contributes to the general literature by (1) examining the neglected combination effects of race/ethnicity and gender with increased social control within juvenile justice proceedings; (2) including Hispanic youth; and (3) looking at the interrelationships among race/ethnicity and gender with the treatment of probation violators.