REGULATORY OPPORTUNISM: CROSS‐NATIONAL PATTERNS IN NATIONAL BANKING REGULATORY RESPONSES FOLLOWING THE GLOBAL FINANCIAL CRISIS

The variation in national regulatory responses to the recent global financial crisis has been considerable. This article explores this variation using new data on conditions in 30 different OECD countries between 2009 and 2012. Using a mixed‐method approach which employs both fuzzy‐set qualitative comparative analysis and logistic regression, we test a number of hypotheses regarding regulatory response patterns in the banking sector. Our findings suggest that while state intervention during the financial crisis was a necessary condition for a significant regulatory response, ‘financialization’, operationalized here as the structural dominance of the financial sector in the economy, plays a more important role. We show that financialization is both a sufficient condition and a good predictor of a significant regulatory response, and point to possible causal explanations for this surprising pattern.     

DOES A PUBLIC SERVICE ETHIC ENCOURAGE ETHICAL BEHAVIOUR? PUBLIC SERVICE MOTIVATION,ETHICAL LEADERSHIP AND THE WILLINGNESS TO REPORT ETHICAL PROBLEMS

This article aims to advance our understanding of and confidence in the relationship between employee public service motivation (PSM) and ethical behaviour by testing the degree to which PSM predicts the ethical behaviour or behavioural intention of government employees. Building on previous research, we argue that government employees with higher PSM are not only more likely to internalize values that support public interests, they also are likely to be concerned less about the potential consequences that they may experience by reporting unethical conduct within their agencies. Using data collected through a survey from 477 employees working in a large state agency, we find that supervisors with higher PSM are more likely to be perceived by their subordinates as exhibiting ethical leadership, supervisors exhibiting higher ethical leadership are more likely to have subordinates with higher levels of PSM and that subordinates with higher PSM express a higher willingness to report unethical behaviour within their agency. We discuss implications of these findings for research on PSM.