IDEAS home Printed from https://ideas.repec.org/a/wly/reggov/v5y2011i3p287-308.html
   My bibliography  Save this article

Naming without shaming: The publication of sanctions in the Dutch financial market

Author

Listed:
  • Judith van Erp

Abstract

Enforcement agencies increasingly disclose or “name and shame” corporate offenders. This article uses responsive regulation as a framework for an empirical study of the impact of non‐anonymous publication of sanctions in the Dutch financial market. These publications are characterized as “naming without shaming”, because they are used for technical guidance rather than with the intention to shame. The findings show that naming offenders functions as a general deterrent in the market for financial intermediaries, but considerably less so in the capital market. In both markets, the publication of sanctions weakened the impact of enforcement. In the capital market, the publications neutralized the seriousness of offenses and contributed to the image of the regulator as powerless. In the market for financial intermediaries, naming offenders was perceived as stigmatizing shaming and led to defiance, rather than compliance. The case study suggests, however, that the publication of sanctions may provide an opportunity for guidance, provided they contain a moral message, rather than technical instruction.

Suggested Citation

  • Judith van Erp, 2011. "Naming without shaming: The publication of sanctions in the Dutch financial market," Regulation & Governance, John Wiley & Sons, vol. 5(3), pages 287-308, September.
    • Handle: RePEc:wly:reggov:v:5:y:2011:i:3:p:287-308
    DOI: 10.1111/j.1748-5991.2011.01115.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1748-5991.2011.01115.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1748-5991.2011.01115.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jacint Jordana & David Levi-Faur (ed.), 2004. "The Politics of Regulation," Books, Edward Elgar Publishing, number 3167.
    2. Karpoff, Jonathan M. & Lee, D. Scott & Martin, Gerald S., 2008. "The Cost to Firms of Cooking the Books," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 43(3), pages 581-611, September.
    3. Doreen McBarnet, 2007. "Compliance, Ethics and Responsibility: Emergent Governance Strategies in the US and UK," World Scientific Book Chapters, in: Justin O'Brien (ed.), Private Equity, Corporate Governance And The Dynamics Of Capital Market Regulation, chapter 9, pages 213-240, World Scientific Publishing Co. Pte. Ltd..
    4. Karpoff, Jonathan M & Lott, John R, Jr & Wehrly, Eric W, 2005. "The Reputational Penalties for Environmental Violations: Empirical Evidence," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 653-675, October.
    5. Yuval Feldman, 2009. "The Expressive Function of Trade Secret Law: Legality, Cost, Intrinsic Motivation, and Consensus," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 6(1), pages 177-212, March.
    6. Søren C. Winter & Peter J. May, 2001. "Motivation for Compliance with Environmental Regulations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 675-698.
    7. Lauren B Edelman, 2007. "Overlapping Fields and Constructed Legalities: The Endogeneity of Law," World Scientific Book Chapters, in: Justin O'Brien (ed.), Private Equity, Corporate Governance And The Dynamics Of Capital Market Regulation, chapter 4, pages 55-90, World Scientific Publishing Co. Pte. Ltd..
    8. Black, Julia, 2008. "Forms and paradoxes of principles-based regulation," LSE Research Online Documents on Economics 23103, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cline, Brandon N. & Walkling, Ralph A. & Yore, Adam S., 2018. "The consequences of managerial indiscretions: Sex, lies, and firm value," Journal of Financial Economics, Elsevier, vol. 127(2), pages 389-415.
    2. Nadine Gatzert & Joan T. Schmit & Andreas Kolb, 2016. "Assessing the Risks of Insuring Reputation Risk," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(3), pages 641-679, September.
    3. Sascha Kolaric, 2024. "The impact of climate litigation and activism on stock prices: the case of oil and gas majors," Review of Managerial Science, Springer, vol. 18(11), pages 3141-3172, November.
    4. Robert Cialdini & Yexin Jessica Li & Adriana Samper & Ned Wellman, 2021. "How Bad Apples Promote Bad Barrels: Unethical Leader Behavior and the Selective Attrition Effect," Journal of Business Ethics, Springer, vol. 168(4), pages 861-880, February.
    5. Joseph K. Tanimura & M. Gary Okamoto, 2013. "Reputational Penalties in Japan: Evidence from Corporate Scandals," Asian Economic Journal, East Asian Economic Association, vol. 27(1), pages 39-57, March.
    6. Ormazabal, Gaizka, 2018. "The Role of Stakeholders in Corporate Governance: A View from Accounting Research," CEPR Discussion Papers 12775, C.E.P.R. Discussion Papers.
    7. Jonathan M. Karpoff, 2021. "On a stakeholder model of corporate governance," Financial Management, Financial Management Association International, vol. 50(2), pages 321-343, June.
    8. Johnson, William C. & Xie, Wenjuan & Yi, Sangho, 2014. "Corporate fraud and the value of reputations in the product market," Journal of Corporate Finance, Elsevier, vol. 25(C), pages 16-39.
    9. Dan Amiram & Zahn Bozanic & James D. Cox & Quentin Dupont & Jonathan M. Karpoff & Richard Sloan, 2018. "Financial reporting fraud and other forms of misconduct: a multidisciplinary review of the literature," Review of Accounting Studies, Springer, vol. 23(2), pages 732-783, June.
    10. Wang, Yujie & Tsang, Albert & Xiang, Yi & Yao, Daifei (Troy), 2023. "Corporate social responsibility misconduct and formation of board interlocks," Journal of Financial Stability, Elsevier, vol. 67(C).
    11. Flore, Christian & Kolaric, Sascha & Schiereck, Dirk, 2017. "Settlement agreement types of federal corporate prosecution in the U.S. and their impact on shareholder wealth," Journal of Business Research, Elsevier, vol. 76(C), pages 145-158.
    12. Ahsan Habib & Md Borhan Uddin Bhuiyan, 2017. "Determinants of monetary penalties for environmental violations," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 754-775, September.
    13. Paolo Polidori & Désirée Teobaldelli, 2018. "Corporate criminal liability and optimal firm behavior: internal monitoring versus managerial incentives," European Journal of Law and Economics, Springer, vol. 45(2), pages 251-284, April.
    14. Flore, Christian & Degryse, Hans & Kolaric, Sascha & Schiereck, Dirk, 2021. "Forgive me all my sins: How penalties imposed on banks travel through markets," Journal of Corporate Finance, Elsevier, vol. 68(C).
    15. Akhtar, Shumi & Akhtar, Farida & John, Kose & Wong, Su-Wen, 2019. "Multinationals' tax evasion: A financial and governance perspective," Journal of Corporate Finance, Elsevier, vol. 57(C), pages 35-62.
    16. Rick Hardcopf & Rachna Shah & Suvrat Dhanorkar, 2021. "The Impact of a Spill or Pollution Accident on Firm Environmental Activity: An Empirical Investigation," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2467-2491, August.
    17. Colak, Gonul & Korkeamäki, Timo P. & Meyer, Niclas Oskar, 2024. "ESG and CEO turnover around the world," Journal of Corporate Finance, Elsevier, vol. 84(C).
    18. Huang, Robin Hui & Zhang, Linhan, 2023. "The effects of reputational sanctions on culpable firms: Evidence from China’s stock markets," International Review of Law and Economics, Elsevier, vol. 75(C).
    19. Knoeber, Charles R. & Walker, Mark D., 2013. "The effect of tougher enforcement on foreign firms: Evidence from the Adelphia perp walk," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 382-394.
    20. Armour, John & Mayer, Colin & Polo, Andrea, 2017. "Regulatory Sanctions and Reputational Damage in Financial Markets," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 52(4), pages 1429-1448, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:reggov:v:5:y:2011:i:3:p:287-308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1748-5991 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.