Abstract
This paper investigates the determinants
of regulatory compliance in corporate organizations.
Exploiting a unique enforcement and reporting framework
for insider trading in Italy, we present three main
findings. First, board governance, such as chief executive-
chairman duality and the proportion of non-executive
directors, does not increase the propensity of firms to
comply with regulation. Second, family firms and firms
with a high degree of separation of ownership from
control are most likely to comply with regulation. Third,
corporate ethos is more important in predicting regulatory
compliance than explicit corporate governance
structures.
| Original language | English |
|---|---|
| Pages (from-to) | 331-343 |
| Number of pages | 13 |
| Journal | Journal of Business Ethics |
| Volume | 90 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Dec 2009 |
Keywords
- regulatory compliance
- corporate governance
- insider trading
- regulation
- Italy
- family firms