Abstract
AbstractIt is often claimed that rewards for whistleblowers lead to fraudulent reports, but for several US programs this has not been a major problem. We model the interaction between rewards for whistleblowers, sanctions against fraudulent reporting, judicial errors, and standards of proof in the court case on a whistleblower’s allegations and the possible follow-up for fraudulent allegations. Balancing whistleblower rewards, sanctions against fraudulent reports, and courts’ standards of proof is essential for these policies to succeed. When the risk of retaliation is severe, larger rewards are needed and so are tougher sanctions against fraudulent reports. The precision of the legal system must be sufficiently high, hence these programs are not viable in weak institution environments, where protection is imperfect and court precision low, or where sanctions against false reporting are mild.
Funder
Jan Wallanders och Tom Hedelius Stiftelse samt Tore Browaldhs Stiftelse
Università degli Studi di Napoli Federico II
Publisher
Springer Science and Business Media LLC
Subject
Law,Economics and Econometrics,Business and International Management
Reference35 articles.
1. Abbink, K., & Wu, K. (2017). Reward self-reporting to deter corruption: An experiment on mitigating collusive bribery. Journal of Economic Behavior & Organization, 133, 256–272.
2. Amir, E., Lazar, A., & Levi, S. (2018). The Deterrent Effect of Whistleblowing on Tax Collections. European Accounting Review, 75(5), 939–954.
3. Apesteguia, J., Dufwenberg, M., & Selten, R. (2007). Blowing the whistle. Economic Theory, 31(1), 143–166.
4. Aubert, C., Kovacic, W., & Rey, P. (2006). The impact of leniency and whistleblowing programs on cartels. International Journal of Industrial Organization, 24, 1241–1266.
5. Bank of England-Prudential Regulations Authority & Financial Conduct Authority (BoE-PRA and FCA), (2014). Financial Incentives for Whistleblowers. Available for download in September 2016 until (at least) June 2017 at https://www.fca.org.uk/news/financial-incentives-for-whistleblowers.
Cited by
7 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献