To control or to compromise? The prominence of chief compliance officer and foreign corrupt practices act violation

Abstract

We investigate the influence of chief compliance office (CCO) prominence in the corporate management team on FCPA violation and audit fees. Based on the compliance function leader's position seniority, we find that a CCO's position rank is positively associated with the propensity of FCPA violation. It indicates that promoting CCO in the firm can facilitate more aggressive compliance policies—it is a “compromise” instead of a “control.” We also find that CCO prominence is positively associated with audit fees even without an FCPA violation happening, which implies that auditors could fully perceive the potential risks embedded in the compliance chief's promotion. The results of this study can be of interest to audit practitioners as well as regulators to better monitor the firms with higher FCPA violation risks.

Research on the emergence mechanism of shared leadership: The mediating role of self-efficacy

“…Secondly, at the micro level, shared leadership is described as a relational phenomenon, involving the interaction and leadership of team members in their efforts towards team goals [19]. Leadership functions are voluntarily shared among members of the team [11]. Therefore, this paper argues that shared leadership is a dynamic and interactive process among team members.…”

“…Based on social exchange theory, this paper incorporates team member exchange, self-efficacy and shared leadership into the research framework and confirms the framework. Secondly, most of the current research on the emergence of shared leadership is based on individual personality traits [11,32]. This paper studies leadership from the perspective of interpersonal perception, which provides a new perspective for the emergence of shared leadership.…”

“…In contrast, most of the current research on shared leadership has focused on the impact it brings, including studies on team performance [1,[5][6][7], and employee behavior [8][9][10]. There are relatively few studies, especially empirical ones, on the causes and operational mechanisms of shared leadership [11][12][13]. Therefore, in this paper, i will identify, analyze, and test the emergent mechanisms of shared leadership based on an empirical research approach to dissect the mediating mechanisms of the impact of team member exchange on the emergence of shared leadership.…”