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Whistleblower protection: Theory and experimental evidence

Mechtenberg, Lydia ; Muehlheusser, Gerd ; Roider, Andreas



Abstract

Whistleblowing by employees plays a major role in uncovering corporate fraud. Recent laws and global policy recommendations aim at facilitating whistleblower protection to enhance the willingness to report and to increase the detection and deterrence of misbehavior. We study these issues in a theory-guided laboratory experiment. As expected, protecting whistleblowers leads to more reporting of ...

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