This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings are relevant to corporate (...) leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors. (shrink)

In this research we apply the Theory of Planned Behavior (TPB) to study decisions related to information privacy protection. A TPB-based model was proposed to investigate whether organization-based self-esteem and perceived deindividuation can be employed to measure the strength of the perceived behavioral control construct. In addition, we examined if the addition of a causal path linking subjective norms to attitudes and another causal path linking organization-based self-esteem to subjective norms enhanced our research model's predicting power. Our study shows that (...) information systems (IS) professionals' intentions to protect personal information privacy are influenced by their attitudes, subjective norms, perceived deindividuation, and organization-based self-esteem. It further shows that attitudes are influenced by subjective norms, which, in turn, are influenced by organization-based self-esteem. (shrink)

This study adapts the theory of reasoned action (Ajzen and Fishbein, 1980) to the behavior of fraudulent reporting on financial statements so as to examine the effects of moral reasoning and self-monitoring on intention to report fraudulently, using structural equation modeling. The paper seeks to investigate two of the red flags for financial statement fraud identified in Loebbecke et al.'s (1989) paper: client management displays a significant lack of moral fiber and client personnel exhibit strong personality anomalies. As expected, high (...) moral reasoners are more influenced than low moral reasoners by their own attitude towards the behavior. Contrary to prior research, low self-monitors are found to be more influenced than high self-monitors by subjective norms. Future research is recommended to investigate the counter-intuitive results for self-monitors, to consider the implications of group decision making as regards the promulgation of fraudulent financial statements, and to examine additional red flags for financial statement fraud. (shrink)

This research investigates the efficacy of business ethics intervention, tests a theoretical model that the love of money is directly or indirectly related to propensity to engage in unethical behavior (PUB), and treats college major (business vs. psychology) and gender (male vs. female) as moderators in multi-group analyses. Results suggested that business students who received business ethics intervention significantly changed their conceptions of unethical behavior and reduced their propensity to engage in theft; while psychology students without intervention had no such (...) changes. Therefore, ethics training had some impacts on business students' learning and education (intelligence). For our theoretical model, results of the whole sample (N = 298) revealed that Machiavellianism (measured at Time 1) was a mediator of the relationship between the love of money (measured at Time 1) and unethical behavior (measured at Time 2) (the Love of Money → Machiavellianism → Unethical Behavior). Further, this mediating effect existed for business students (n = 198) but not for psychology students (n = 100), for male students (n = 165) but not for female students (n = 133), and for male business students (n = 128) but not for female business students (n = 70). Moreover, when examined alone, the direct effect (the Love of Money → Unethical Behavior) existed for business students but not for psychology students. We concluded that a short business ethics intervention may have no impact on the issue of virtue (wisdom). (shrink)

This study tests the hypothesis that university professors (lecturers) (in the U.S. and Spain) with different money profiles (based on Factors Success, Budget, Motivator, Equity, and Evil of the Love of Money Scale) will differ in work-related attitudes and satisfaction. Results suggested that Achieving Money Worshipers (with high scores on Factors Success, Motivator, Equity, and Budget) had high income, Work Ethic, and high satisfaction with pay level, pay administration, and internal equity comparison but low satisfaction with external equity comparison. Careless (...) Money Admirers (high Success but low Budget) had low intrinsic job satisfaction and low satisfaction with pay level and life. Apathetic Money Managers (low Evil and low Motivator) had the highest intrinsic job satisfaction and life satisfaction. Money Repellent Individuals (high Evil and low Success) had low income, work experience, Work Ethic, and low satisfaction with pay administration. Money does not provide the same motivation for people in all four money profiles. Results are discussed in light of the effectiveness of using money to reward people with different money profiles, intrinsic motivation, and unethical behavior. (shrink)

As moral decision making in financial markets incorporates moral considerations into investment decisions, some rational decision theorists argue that moral considerations would introduce inefficiency to investment decisions. However, market demand for socially responsible investment is increasing, suggesting that investment decisions are influenced by both financial and moral considerations. Several models can be applied to explain moral behavior. We test the suitability of (a) multiple attribute utility theory (MAUT), (b) theory of planned behavior, and (c) issue-contingent model of ethical decision making (...) in organizations. In an experimental setting, 141 participants traded company shares in a computerized asset market. Over 12 periods, companies varied in morality (i.e., treatment of employees) and in profitability (i.e., expected dividends per share). Participants’ bids and asks for shares were recorded. Results indicate that moral considerations influence investment decisions, controlling for profit. Differences between the three models are discussed. (shrink)

This research examines business and psychology students’ attitude toward unethical behavior (measured at Time 1) and their propensity to engage in unethical behavior (measured at Time 1 and at Time 2, 4 weeks later) using a 15-item Unethical Behavior measure with five Factors: Abuse Resources, Not Whistle Blowing, Theft, Corruption, and Deception. Results suggested that male students had stronger unethical attitudes and had higher propensity to engage in unethical behavior than female students. Attitude at Time 1 predicted Propensity at Time (...) 1 accurately for all five factors (concurrent validity): If students consider it to be unethical, then, they are less likely to engage in that unethical behavior. Attitude at Time 1 predicted only Factor Abuse Resources for Propensity at Time 2. Propensity at Time 1 was significantly related to Propensity at Time 2. Attitude at Time 1, Propensity at Time 1, and Propensity at Time 2 had achieved configural and metric measurement invariance across major (business vs. psychology). Thus, researchers may have confidence in using these measures in future research. (shrink)

The study extends the Theory of Planned Behavior (TPB) in a cross-cultural setting, incorporating ethical judgments and locus of control in a comparison of Taiwanese and US businesspersons. A self-administered survey of 698 businesspersons from the US and Taiwan examined several hypothesized differences. Results indicate that while Taiwanese respondents have a more favorable attitude toward a requested bribe than US counterparts, and are less likely to view it as an ethical issue, their higher locus externality causes ethical judgments and behavioral (...) intentions to conform to normative influences of in groups and superiors. In the Taiwanese sample, locus externality effectively functions as a countervailing pressure against the unethical behavior in the scenario. No such effect is found in the US sample. A path model fitted to the data shows that locus internals exhibit more consistency among attitudes, judgments, and behavioral intentions than locus externals. Implications for managers and researchers are discussed, and suggestions and precautions for development of efficacy-enhancement programs are offered. (shrink)