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Monetary intelligence and behavioral economics across 32 cultures: good apples enjoy good quality of life in good barrels

Thomas, Li-Ping Tang and Sutarso, Toto and Ansari, Mahfooz A. and Lim, Vivien Kim Geok and Teo, Thompson Sian Hin and Arias-Galicia, Fernando and Garber, Ilya E. and Chiu, Randy Ki Kwan and Charles-Pauvers, Brigitte and Luna-Arocas, Roberto and Vlerick, Peter and Akande, Adebowale Williams and Ibrahim, Abdul Hamid Safwat and Osman-Gani, AAhad M. and Özbek, Mehmet Ferhat (2018) Monetary intelligence and behavioral economics across 32 cultures: good apples enjoy good quality of life in good barrels. Journal of Business Ethics, 148 (4). pp. 893-917. ISSN 0167-4544

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Abstract

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 bright side of Monetary Intelligence and behavioral economics, frames money attitude in the context of pay and life satisfaction, and controls money at the macro-level (GDP per capita) and microlevel (Z income). We theorize: Managers with low love of money motive but high stewardship behavior will have high subjective well-being: pay satisfaction and quality of life. Data collected from 6586 managers in 32 cultures across six continents support our theory. Interestingly, GDP per capita is related to life satisfaction, but not to pay satisfaction. Individual income is related to both life and pay satisfaction. Neither GDP nor income is related to Happiness (money makes people happy). Our theoretical model across three GDP groups offers new discoveries: In high GDP (rich) entities, ‘‘high income’’ not only reduces aspirations—‘‘Rich, Motivator, and Power,’’ but also promotes stewardship behavior—‘‘Budget, Give/ Donate, and Contribute’’ and appreciation of ‘‘Achievement.’’ After controlling income, we demonstrate the bright side of Monetary Intelligence: Low love of money motive but high stewardship behavior define Monetary Intelligence. ‘‘Good apples enjoy good quality of life in good barrels.’’ This notion adds another explanation to managers’ low magnitude of dishonesty in entities with high Corruption Perceptions Index (CPI) (risk aversion for gains of high probability) (Tang et al. 2015. doi:10.1007/ s10551-015-2942-4). In low GDP (poor) entities, high income is related to poor Budgeting skills and escalated Happiness. These managers experience equal satisfaction with pay and life. We add a new vocabulary to the conversation of monetary intelligence, income, GDP, happiness, subjective well-being, good and bad apples and barrels, corruption, and behavioral ethics.

Item Type: Article (Journal)
Additional Information: 6160/49388
Uncontrolled Keywords: Prospect theory, GDP, Corruption, Perceptions, Index/CPI Satisfaction, Corporate ethical values International Cross-cultural Global economic pyramid Behavioral economics Economists/psychologist
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration
H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5387 Business ethics
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User: Professor AAhad Osman-Gani
Date Deposited: 04 Feb 2016 10:07
Last Modified: 13 Mar 2019 11:08
URI: http://irep.iium.edu.my/id/eprint/49388

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