Measuring Compliance: The Challenges in Assessing and Understanding the Interaction between Law and Organizational Misconduct
Van Rooij, Benjamin, and Melissa Rorie. "Measuring Compliance: The Challenges in Assessing and Understanding the Interaction between Law and Organizational Misconduct." In Measuring Compliance: Assessing Corporate Crime and Misconduct Prevention, 2021
36 Pages Posted: 3 Jun 2021
Date Written: May 26, 2021
A major question in corporate compliance research and practice is how to establish the effectiveness of compliance programs and policies on promoting desirable outcomes. To assess such effectiveness requires proper measurement. This chapter, which is the introduction to an edited volume on corporate compliance measurement, discusses the trade-offs involved in using different quantitative and qualitative approaches to measure corporate compliance and its predictors. It assesses the strengths and weaknesses of different research strategies in terms of their validity in capturing behavioral responses, their ability to establish causality, their precision in showing complexity, their generalizability, and their feasibility and cost-effectiveness. The chapter concludes that a mixed-methods approach is the best way to reduce the trade-offs in measurement; using such an approach best accommodates the five quality standards of proper measurement.
Keywords: corporate compliance, qualitative methods, quantitative methods, regulatory enforcement, mixed methods
JEL Classification: K20, K22, K23, K42, M10, M14, M19
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