We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
RELATIVE IMPACTS OF MONETARY AND NON-MONETARY FACTORS ON WHISTLEBLOWING INTENTION: THE CASE OF SECURITIES FRAUD.
- Authors
Masaki Iwasaki
- Abstract
The Securities and Exchange Commission (SEC)'s whistleblower reward program has received much attention with its recent expansion in regards to reward amounts and whistleblowing tips. Opinions have been divided over whether whistleblower rewards, along with whistleblower protection laws, align with potential whistleblowers' decision-making, and this disagreement has arisen from our insufficient understanding of the relative importance of the factors affecting whistleblowers' decisions. The author conducted a survey of U.S. employees using a securities fraud scenario and then used a path analysis to estimate the relative impacts of the factors affecting employees' internal and external whistleblowing intentions. The results revealed that, given the conditions assumed in the scenario, there were two main factors affecting internal whistleblowing intention: organizational commitment had a positive impact, and the fear of retaliation had a negative impact. In comparison, there were also two main factors affecting external whistleblowing intention: moral intensity and rewarddriven motivation, both of which had positive impacts. The effect sizes of these impacts on internal and external whistleblowing intentions fell within the small-to-medium range according to conventional statistical criteria. These results implied that both monetary and non-monetary motivations can be enhanced by whistleblower policies. Whistleblower protection and timely responses by companies and the SEC are critical in improving the balance of costs and benefits to individuals resulting from internal and external whistleblowing, and monetary rewards are an effective policy tool to encourage external whistleblowing.
- Subjects
UNITED States. Securities &; Exchange Commission; SECURITIES fraud; WHISTLEBLOWING; ORGANIZATIONAL commitment; PATH analysis (Statistics)
- Publication
University of Pennsylvania Journal of Business Law, 2020, Vol 22, Issue 3, p591
- ISSN
1945-2934
- Publication type
Article