The determinants of regulatory compliance

an analysis of insider trading disclosures in Italy

E. Bajo, M. Bigelli, D.J. Hillier, B. Pertacci

Research output: Contribution to journalArticle

20 Citations (Scopus)

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 languageEnglish
Pages (from-to)331-343
Number of pages13
JournalJournal of Business Ethics
Volume90
Issue number3
DOIs
Publication statusPublished - Dec 2009

Fingerprint

Italy
determinants
firm
regulation
governance
Disclosure
Regulatory compliance
Insider trading
Chief Executives
Ownership
Ethos
Family Firms
Governance
Enforcement
Duality
Propensity
Proportion
Chairmen
Chief executives
Family firms

Keywords

  • regulatory compliance
  • corporate governance
  • insider trading
  • regulation
  • Italy
  • family firms

Cite this

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The determinants of regulatory compliance : an analysis of insider trading disclosures in Italy. / Bajo, E.; Bigelli, M.; Hillier, D.J.; Pertacci, B.

In: Journal of Business Ethics, Vol. 90, No. 3, 12.2009, p. 331-343.

Research output: Contribution to journalArticle

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