Whistleblowing in entrepreneurial ventures

The effect of brainstorming, auditor ethics, and whistleblowers on audit opinions of government financial reports: The moderating role of management support

“…In order to make the influence on the audit opinion more indirect and difficult to assess, auditors must conduct their audit process independently and objectively without interference from outside parties, including whistleblowers. It is in line with findings that reveal that while there are high levels of whistleblowing occurring in entrepreneurial companies (for example, We Work, Uber, and Theranos), there is a lack of understanding regarding when and why whistleblowing occurs outside the domain of traditional large companies (Clark & Skousen, 2023). Other research also reveals that allegations of whistleblowing have an impact on the audit fees of similar companies and auditors' opinions regarding the effectiveness of internal controls.…”

“…Several researchers have studied the influence of whistleblowers on audit opinions (Clark & Skousen, 2023;Lin, Li, Xu, & Ding, 2023;Zhou, 2023). Their research revealed that while there are high levels of whistleblowing occurring in entrepreneurial companies (e.g., We Work, Uber, and Theranos), the re is a lack of understanding of when and why whistleblowing occurs outside the company's domain-traditional large companies (Clark & Skousen, 2023).…”

“…Several researchers have studied the influence of whistleblowers on audit opinions (Clark & Skousen, 2023;Lin, Li, Xu, & Ding, 2023;Zhou, 2023). Their research revealed that while there are high levels of whistleblowing occurring in entrepreneurial companies (e.g., We Work, Uber, and Theranos), the re is a lack of understanding of when and why whistleblowing occurs outside the company's domain-traditional large companies (Clark & Skousen, 2023). The research found that the impact of internal whistleblowing on a company's CSR performance is more pronounced in companies that have fewer financial constraints or have higher profitability, companies with less institutional share ownership and fewer analyst followings, and companies located in provinces with a more extraordinary cultural atmosphere.…”

“…The research found companies and new ventures' status regarding whistleblowing on a unique data set of 3,113 reported frauds. From these findings, the research inductively theorizes a new model of whistleblower motivation that is driven by the unique entrepreneurial context that attracts people to join a cause and the consequences that must be paid if loyalty is not maintained (Clark & Skousen, 2023). The connection with audit opinion (AO) is very important because the information disclosed by a whistleblower is a factor that influences audit results.…”

Is It Okay to Study Entrepreneurial Orientation (EO) at the Individual Level? Yes!

“…6 Indeed, it is natural that firm EO, within the constraints and allowances of hierarchical erosion (i.e., Gibson et al, 2019), will influence the individual both in their own beliefs and in their job-related activities. However, it is these individual structural participants that will both be attracted to the entrepreneurial values of the firm (e.g., Clark & Skousen, 2023) and will help provide self-regulation regarding those values (Clark, 2023). The role of individual employees is a growing focus of corporate entrepreneurship research (Biniari, 2012; Gawke et al, 2019; Kang et al, 2016; Tietz & Parker, 2018), and the individual employee plays a vital role as recipient, throughput, and guardian for firm EO.…”