A Comparative Study of the Propensity of Whistle-Blowing: Empirical Evidence from China, Taiwan, and the United States

Dennis B.K. Hwang, Yan Chen, Andrew Blair Staley, Yafang Tsai, Chin-Ling Chu

Abstract


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.


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DOI: http://dx.doi.org/10.5296/ijafr.v3i2.4723

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