Patterns of enforcement: examining the interplay between firms, media and regulators
by David Eduardo Cavazos; Karen Diane Walker Patterson; Marvin Washington
International Journal of Business Environment (IJBE), Vol. 6, No. 3, 2014

Abstract: This research examines the interplay between regulators, media and firms by showing how public bureaucracies maintain institutional control in light of varying degrees of firm compliance and media coverage. Analysis of US National Highway Traffic and Safety Administration (NHTSA) automobile crash tests reveals a push-pull process in which increased regulatory activity, sparked by media coverage and firm inspection performance, leads to increased firm participation in regulatory processes, which in turn, decreases regulatory activity. Results additionally illustrate how inspections modify firm political behaviour; particularly when accompanied by media coverage of regulatory issues. The administration of such inspections illustrates the dynamic nature of the relationship between firms and regulators.

Online publication date: Thu, 31-Jul-2014

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