TY - JOUR
T1 - Monetary Intelligence and Behavioral Economics
T2 - The Enron Effect—Love of Money, Corporate Ethical Values, Corruption Perceptions Index (CPI), and Dishonesty Across 31 Geopolitical Entities
AU - Tang, Thomas Li Ping
AU - Sutarso, Toto
AU - Ansari, Mahfooz A.
AU - Lim, Vivien K.G.
AU - Teo, Thompson S.H.
AU - Arias-Galicia, Fernando
AU - Garber, Ilya E.
AU - Chiu, Randy Ki Kwan
AU - Charles-Pauvers, Brigitte
AU - Luna-Arocas, Roberto
AU - Vlerick, Peter
AU - Akande, Adebowale
AU - Allen, Michael W.
AU - Al-Zubaidi, Abdulgawi Salim
AU - Borg, Mark G.
AU - Cheng, Bor Shiuan
AU - Correia, Rosario
AU - Du, Linzhi
AU - Garcia de la Torre, Consuelo
AU - Ibrahim, Abdul Hamid Safwat
AU - Jen, Chin Kang
AU - Kazem, Ali Mahdi
AU - Kim, Kilsun
AU - Liang, Jian
AU - Malovics, Eva
AU - Moreira, Alice S.
AU - Mpoyi, Richard T.
AU - Nnedum, Anthony Ugochukwu Obiajulu
AU - Osagie, Johnsto E.
AU - Osman-Gani, AAhad A.M.
AU - Özbek, Mehmet Ferhat
AU - Pereira, Francisco José Costa
AU - Pholsward, Ruja
AU - Pitariu, Horia D.
AU - Polic, Marko
AU - Sardžoska, Elisaveta Gjorgji
AU - Skobic, Petar
AU - Stembridge, Allen F.
AU - Tang, Theresa Li Na
AU - Urbain, Caroline
AU - Trontelj, Martina
AU - Canova, Luigina
AU - Manganelli, Anna Maria
AU - Chen, Jingqiu
AU - Tang, Ningyu
AU - Adetoun, Bolanle E.
AU - Adewuyi, Modupe F.
N1 - Publisher Copyright:
© 2016, Springer Science+Business Media Dordrecht.
PY - 2018/4/1
Y1 - 2018/4/1
N2 - Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty (corruption). Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity of the relationship between love of money and dishonest prospect (dishonesty) may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level (CEV, Level 1) and Corruption Perceptions Index at the macro-level (CPI, Level 2), collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels (high CEV/high CPI), mixed barrels (low CEV/high CPI or high CEV/low CPI), and bad barrels (low CEV/low CPI) display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities (risk seeking of high probability)—the Enron Effect, but thelowest in low CPI entities (risk aversion of low probability). CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics.
AB - Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty (corruption). Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity of the relationship between love of money and dishonest prospect (dishonesty) may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level (CEV, Level 1) and Corruption Perceptions Index at the macro-level (CPI, Level 2), collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels (high CEV/high CPI), mixed barrels (low CEV/high CPI or high CEV/low CPI), and bad barrels (low CEV/low CPI) display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities (risk seeking of high probability)—the Enron Effect, but thelowest in low CPI entities (risk aversion of low probability). CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics.
KW - Barrels
KW - Behavioral intention/Behavioral ethics
KW - CPI
KW - Corruption
KW - Cross-cultural
KW - FDI
KW - GDP
KW - Global economic pyramid
KW - Good/bad apples
KW - Human resource management
KW - Love of money
KW - Multilevel
KW - Prospect theory
KW - Risk aversion
KW - Risk seeking
KW - Theory of planned behavior
UR - http://www.scopus.com/inward/record.url?scp=84955592605&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84955592605&partnerID=8YFLogxK
U2 - 10.1007/s10551-015-2942-4
DO - 10.1007/s10551-015-2942-4
M3 - Article
AN - SCOPUS:84955592605
SN - 0167-4544
VL - 148
SP - 919
EP - 937
JO - Journal of Business Ethics
JF - Journal of Business Ethics
IS - 4
ER -