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The Accounting Review Vol. 100 No. 1 2025

Enterprise Resource Planning (ERP) System Implementations and Corporate Misconduct

Jonas Heese; Joseph Pacelli

Harvard University

Abstract

This study examines whether enterprise resource planning (ERP) implementations are associated with reductions in corporate misconduct. Specifically, we study the relation between staggered facility-level rollouts of ERP systems and facility-level regulatory violations across a large sample of U.S. firms. Our results indicate that facility-level ERP adoptions are associated with substantial reductions in local violations and penalties. Additional analyses suggest that the effects are more pronounced among facilities incorporating advanced analytics into their systems and among workforces that are less resistant to technology change. Overall, our results suggest that ERP systems generate indirect effects that enhance compliance outcomes across a wide range of violations.

DOI
10.2308/tar-2023-0094
Volume
100
Issue
1
Pages
291-315
Language
en
Sources
openalex bibtex:phds-export.bib crossref

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