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Financial Reporting and Detection of Labor Union Misconduct
Journal article   Open access   Peer reviewed

Financial Reporting and Detection of Labor Union Misconduct

Danye Wang
The Accounting review
05/01/2026
DOI: 10.2308/TAR-2024-0710
url
https://doi.org/10.2308/TAR-2024-0710View
Published (Version of record) Open Access

Abstract

Labor unions are central to promoting worker protection and fairness, yet misconduct can undermine their ability to advocate. Despite over 60 years of regulations requiring unions to file financial reports, debate persists about those rules’ effectiveness. Proponents argue that transparency exposes wrongdoing, whereas critics question whether reporting constrains misconduct. Accounting research shows that financial information can uncover fraud in public firms, but its generalizability to unions is unclear. Using a hand-collected dataset, I examine the role of financial reporting in detecting and disciplining union misconduct. Results show that reporting information can reveal misconduct and that detection and discipline increase for unions subject to enhanced reporting requirements following a 2004 regulatory change. Further analysis indicates that union stakeholders, including members, employers, media, and antiunion organizations, use this information to help reveal misconduct. Overall, the findings suggest that financial reporting plays a significant role in promoting accountability within labor unions. Data Availability: Data are publicly available from the sources identified in the text. JEL Classifications: M41; M48; J51; K14.
misconduct financial reporting labor unions nonprofit organizations

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