Study shows anonymous whistle-blowers less likely to be believed
Monday, July 12, 2010 - 10:14
in Mathematics & Economics
According to a new study, corporate directors, who are ultimately responsible for internal whistle-blowing systems, often do not take action at all regarding anonymous allegations, even when the allegation involves very serious accounting breaches. However, if an identical non-anonymous allegation surfaces, audit committees often launch into action and the corporate director allocates significant resources to the investigation at hand. The first study to investigate the whistle-blowing issue with practicing audit committee members is now published in the Journal of Management Studies.