The Effect Of Organizational Response And Legal Protection On Whistleblowing Decision Of Whistleblowing Channels

The accounting fraud of listed companies will cause economic losses for corporate shareholders and creditors,misleading investors to make wrong judgments,and bring negative effects to the stability of the capital market.After discovering the fraudulent behavior in the company,employees may choose to report to the internal receivers such as the immediate supervisor,company executives or related departments,or they may choose to report to external recipients such as the regulatory authorities and the media.The choice of the whistleblowing channel will have different impacts on the individual,the company and the shareholders of the whistle-blower.Therefore,the research on the factors affecting the choice of channel has important significance for enterprises and regulators.This paper select organizational response and legal protection,analyzes the impact of the organization’s response on employees’ internal whistleblowing intentions and external whistleblowing intentions,and the impact of legal protection on employees’ internal whistleblowing intentions and external whistleblowing intentions.The two-factor completely randomized experiment was used to divide the organizational response into two levels: positive and negative.The legal protection variable was divided into two levels,four experimental scenarios were constructed,and the subjects were selected for scenario experiments.,obtained 327 experimental data for processing analysis.The following conclusions are drawn:(1)The organizational response has a significant impact on the employee’s internal disclosure intention,which is reflected in the positive organizational response to improve the employee’s internal disclosure intention,and the organizational response has no significant intention for the employee’s external disclosure.(2)Legal protection has a significant impact on employees’ internal disclosure intentions and external disclosure intentions.High level of legal protection can simultaneously improve employees’ internal disclosure intentions and external disclosure intentions.(3)When considering the interaction of organizational response and legal protection,the effect of legal protection on internal whistleblowing intention depends on the level of organizational response.Only when the organization responds positively to past disclosures,the improvement of legal protection level can make internal disclosure The intention has increased significantly.(4)When considering the interaction of organizational response and legal protection,the impact of organizational response on external whistleblowing intention depends on the level of legal protection.Only when the level of legal protection is high,the organization’s negative response to past disclosures makes external whistleblowing intentions increase.This study provides an important basis for strengthening the construction of internal reporting mechanisms and thus improving the legal level of fraud prevention in China.