The Daily Stat: Whistleblowers' Impact Depends on the Press

Are you having trouble viewing this email? If so, click here to see it in a web browser. HOME   |   BLOGS   |   THE MAGAZINE   |   BOOKS   |   AUTHORS   |   STORE RSS   |   Mobile JULY 2, 2010 Whistle-Blowers' Impact Depends on the Press If the media publicizes whistle-blowers' allegations of financial misconduct, companies are 2.4 times more likely than others to have to restate their financial results, and their stock price tends to suffer for two years. But if the allegations aren't picked up by the media, no such effects occur, says a study led by Shiva Rajgopal of Emory University. The research, based on analysis of 81 companies, appears in the American Accounting Association's journal Accounting Review. Source: American Accounting Association Share Today's Stat: RELATED PRODUCT Why Didn't We Know? HBR Case Study Galvatrens, a fictional consumer products company in Houston, has a whistle-blower's lawsuit on its hands. The CEO and the board need to figure out why, with multiple open communication channels in place, only one person came forward with information — and why that person ended up suing the company. ADVERTISEMENT Follow the Stat: BEST SELLERS Guide to Persuasive Presentations HBR's 10 Must Reads: The Essentials Financial Intelligence Collection HBR's 10 Must Reads on Managing Yourself Guide to Better Business Writing PREVIOUS STATS Don't Sit Up Straight Only 82% of U.S. Women Give Birth Job-Seeking Hardly a "Full-Time Job" for Most Unemployed Corporate Cost-Cutting Programs Fizzle Close High-School Friendships Point to Higher Wages States Face a Third Year of Revenue Shrinkage 3 Tips for Getting Out of Your Boss' Shadow Clothing for Big Women Bucks Downward Trend in Apparel Sales Where Sales Reps Go Wrong India Leads the World in Highway Deaths Job Seekers, Take Note Whether you've been laid off or are considering a job change, HBR's Guide to Getting a Job will help ensure that your next move is the right one. Only $19.95. Buy now » UNSUBSCRIBE   |   UPDATE YOUR PROFILE   |   MORE EMAIL NEWSLETTERS   |   PRIVACY POLICY Was this email forwarded to you? If so, sign up to start receiving your own copy. ABOUT THIS MAILING LIST You have received this message because you subscribed to the "The Daily Stat" email newsletter from Harvard Business Review. If at any point you wish to remove yourself from this list, change your email address, or sign up for other email newsletters and alerts, please visit the Harvard Business Review Email Newsletter Preference Center. ADVERTISE WITH HBR This enewsletter is read by thousands of decision makers every day. Learn more about connecting your brand with this audience. Copyright © 2010 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing | 60 Harvard Way | Boston, MA 02163 Customer Service: 800-545-7685 (+1-617-783-7600 outside the U.S. and Canada)