caa a22 4500 605484708 CHVBK 20210128100437.0 cr unu---uuuuu 210128e20150101xx s 000 0 eng 10.1007/s10551-013-1992-8 doi (NATIONALLICENCE)springer-10.1007/s10551-013-1992-8 The Influence of Regulatory Approach on Tone at the Top [Elektronische Daten] [Bradley Lail, Jason MacGregor, Martin Stuebs, Timothy Thomasson] We discuss how the approach taken by regulators to address financial reporting issues has a significant influence on tone at the top. While tone must ultimately be established internally, regulators are more likely to have a positive impact on the quality of financial reporting by addressing organizational tone. A strong tone at the top should ensure that the financial reports are characterized by greater transparency and complete disclosures, and a regulator's response will depend upon their perspective as to what motivates management. A compliance-based approach, rooted in agency theory's assumption that managers act in their own best interests, seeks to mandate desirable behavior through elevated monitoring and reduced managerial discretion. Alternatively, an empowerment-based approach rooted in stewardship theory views managers as trustworthy guardians and grants them greater discretion without burdensome external monitoring. In practice, regulations fall on a continuum between these two approaches. To illustrate the continuum between compliance and empowerment, we present three cases in financial and tax reporting and examine the outcomes of these recent regulatory responses. We then provide conclusions regarding the effectiveness of each regulation by considering how tone was influenced within organizations. Springer Science+Business Media Dordrecht, 2013 Tone at the top nationallicence Financial reporting nationallicence Regulation nationallicence Compliance nationallicence Empowerment nationallicence Agency nationallicence Stewardship nationallicence Lail Bradley Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut MacGregor Jason Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut Stuebs Martin Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut Thomasson Timothy Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut Journal of Business Ethics Springer Netherlands 126/1(2015-01-01), 25-37 0167-4544 126:1<25 2015 126 10551 https://doi.org/10.1007/s10551-013-1992-8 text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s10551-013-1992-8 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Lail Bradley Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut NATIONALLICENCE 700 1- MacGregor Jason Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut NATIONALLICENCE 700 1- Stuebs Martin Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut NATIONALLICENCE 700 1- Thomasson Timothy Hankamer School of Business, Baylor University, One Bear Place #98002, 76798-8002, Waco, TX, USA aut NATIONALLICENCE 773 0- Journal of Business Ethics Springer Netherlands 126/1(2015-01-01), 25-37 0167-4544 126:1<25 2015 126 10551