Corporate whistleblowing systems in the digital era: Determinants, effects, and disclosure
Abstract
Whistleblowing is a practice of communication between two parties that involves
negative or sensitive information regarding potential misconduct in an organization.
Due to the nature of the information involved in whistleblowing, whistleblowers can
experience high levels of personal risk. They are often prevented from reporting or
facing retaliation after communicating sensitive information. To minimize risk,
companies may need to take the initiative to establish confidential and secure
reporting channels. In practice, to deal with the challenges of providing better
channels for whistleblowing, communication technology has been developed. One
of the technological advancements in whistleblowing is web-based channels
developed and administered by third parties. Additionally, the existence of social
media can also contribute to whistleblowing practices. This thesis is based on four
essays studying the topic of corporate whistleblowing channels. It discusses the
issues of internal whistleblowing system adoption and disclosure, in which the
determinants and effects are examined by considering technological advancements
in whistleblowing. Using a sample of companies from the European Economic Area
(EEA), this dissertation highlights the role of country peers as one of the
determinants for companies to decide whether or not to adopt third-party web-based
whistleblowing platforms. It also provides evidence suggesting that the introduction
of whistleblowing systems—especially web-based platforms—potentially affects
external auditors’ perceptions, as reflected by their audit pricing decisions.
Moreover, the implementation of the platforms may also lead to corporate disclosure
regarding the occurrence of internal whistleblowing reports, which further results in
the use of a substantive approach to legitimize the incidents. Lastly, regarding the
use of social media, it is found that when employees post more negative information
about their employers online, the companies tend to legitimize their internal
communication channels through non-financial disclosure.
Degree
Doctor of Philosophy
University
University of Gothenburg. School of Business, Economics, and Law
Institution
Department of Business Administration ; Företagsekonomiska institutionen
Disputation
Fredagen den 27 Oktober 2023, klockan 10.15 i sal E44, Handelshögskolan, Vasagatan 1, Göteborg.
Date of defence
2023-10-27
rahmatdi.rahmatdi@gu.se
Date
2023-10-05Author
Rahmatdi, Rahmatdi
Keywords
Whistleblowing, digitalization, legitimacy, peers, audit fees, social media, disclosure
Publication type
Doctoral thesis
ISSN
978-91-8069-420-9
Language
eng