Thornton, Dorothy; Gunningham, Neil; Kagan, Robert A
This research addresses the assumption that "general deterrence" is an important key to enhanced compliance with regulatory laws. Through a survey of 233 firms in several industries in the United States, we sought to answer the following questions: (1) When severe legal penalties are imposed against a violator of environmental laws, do other companies in the same industry actually learn about such "signal cases"? (2) Does knowing about "signal cases" change firms' compliance-related behavior?...[Show more]
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