Open AccessA Comparative Study of the Propensity of Whistle-Blowing: Empirical Evidence from China, Taiwan, and the United States
Author(s) -
Dennis B.K. Hwang,
Chen Yan,
A. Blair Staley,
Yin-Te Tsai,
Chin-Ling Chu
Publication year - 2014
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v3i2.4723
Subject(s) - whistle blowing , china , guanxi , liberian dollar , business , audit , empirical evidence , empirical research , disposition , psychology , demographic economics , social psychology , accounting , public relations , political science , law , economics , philosophy , finance , epistemology
This paper explores cultural factors that influence the propensity to blow-the-whistle in China, Taiwan, and the U.S. Statistical analysis of self-developed questionnaires reveals that: a) Americans have a greater disposition to engage in whistle-blowing than Chinese and Taiwanese; b) the intention of Chinese and Taiwanese to whistle-blow is influenced to a greater degree by the dollar amounts involved and also by the impact of illegal, immoral or illegitimate practices on companies and societies than that of the Americans; c) Guanxi (personal relationships or networks) has a greater effect on the propensity to whistle-blow for Chinese and Taiwanese than for Americans. Auditors and managers need to be aware that employees in different cultures respond differently to factors that influence whistle-blowing. The results of this study will help auditors and managers better assess risk and the effectiveness of internal controls and ethical standards.