ABSTRACT
This paper examines how the deterrence of fraud affects firms’ innovation outputs, based on a quasi-experiment of the Whistleblower Program. We find that the deterrence of fraud is positively related to firms’ innovation outputs, both quantitatively and qualitatively. Moreover, its impact is more pronounced when a firm has more information asymmetry or higher employee turnover.
Disclosure statement
No potential conflict of interest was reported by the author(s).