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Publications
Publications
  • April–May 2021
  • Article
  • Journal of Accounting & Economics

The Effect of Retaliation Costs on Employee Whistleblowing

By: Jonas Heese and Gerardo Pérez Cavazos
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Abstract

We use large increases in unemployment insurance (UI) benefits to study the effects of expected retaliation costs on employee whistleblowing. Increases in UI benefits reduce the costs that arise from a job loss, one of the costliest forms of retaliation. We find that increases in UI benefits increase the number of facility-level employee workplace safety complaints filed with the regulator. Furthermore, UI benefit increases also result in more violations and more penalties. The effects are concentrated in firms where retaliation is more likely as measured by weaker employee relations, internal controls, and monitoring. Our findings show the importance of reducing retaliation costs to tap into employees’ knowledge of misconduct.

Keywords

Employee Whistleblowing; Retaliation Costs; Labor Unemployment Insurance; Workplace Safety Inspections

Citation

Heese, Jonas, and Gerardo Pérez Cavazos. "The Effect of Retaliation Costs on Employee Whistleblowing." Art. 101385. Journal of Accounting & Economics 71, nos. 2-3 (April–May 2021).
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About The Author

Jonas Heese

Accounting and Management
→More Publications

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    • December 2023
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    Accounting for Loan Losses at JPMorgan Chase: Predicting Credit Costs

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    • November 2023
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    Accounting Outages at Plug Power? (C)

    By: Jonas Heese, Joseph Pacelli and James Barnett
    • November 2023
    • Accounting Review

    When Executives Pledge Integrity: The Effect of the Accountant's Oath on Firms' Financial Reporting

    By: Jonas Heese, Gerardo Pérez Cavazos and Caspar David Peter
More from the Authors
  • Accounting for Loan Losses at JPMorgan Chase: Predicting Credit Costs By: Jonas Heese and Jung Koo Kang
  • Accounting Outages at Plug Power? (C) By: Jonas Heese, Joseph Pacelli and James Barnett
  • When Executives Pledge Integrity: The Effect of the Accountant's Oath on Firms' Financial Reporting By: Jonas Heese, Gerardo Pérez Cavazos and Caspar David Peter
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