Abstract
This article empirically researches how different leadership styles, namely transformational and transactional leadership, reduce the risk of organizational corruption in companies if formal and informal management control systems are in place. This study is based on survey responses from more than 400 CEOs in a developed economy in Western Europe and extensive literature from the relevant fields of research. Our results prove transactional leadership style as a statistically significant antecedent to formal control systems and transformational leadership as antecedent to both types of management control systems. Formal control systems reduce organizational corruption significantly while informal control systems do not have significant effects on corruptive behavior in companies.
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