Monetary intelligence and behavioral economics: The enron effect—love of money, corporate ethical values, corruption perceptions index (CPI), and dishonesty across 31 geopolitical entities

Tang, Thomas Li-Ping 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 Allen, Michael W. and Al-Zubaidi, Abdulgawi Salim and Borg, Mark G. and Cheng, Bor-Shiuan and Correia, Rosario and Du, Linzhi and Garcia De La Torre, Consuelo and Ibrahim, Abdul Hamid Safwat and Jen, Chinkang and Kazem, Ali Mahdi and Kim, Kilsun and Liang, Jian and Málovics, Éva and Moreira, Alice S. and Mpoyi, Richard T. and Nnedum, Anthony Ugochukwu Obiajulu and Osagie, Johnsto E. and Osman-Gani, AAhad M. and Özbek, Mehmet Ferhat and Pereira, Francisco José Costa and Pholsward, Ruja and Pitariu, Horia D. and Polič, Marko and Sardžoska, Elisaveta Gjorgji and Skobic, Petar and Stembridge, Allen F. and Tang, Theresa Li Na and Urbain, Caroline and Trontelj, Martina and Canova, Luigina and Manganelli, Anna Maria and Chen, Jingqiu and Tang, Ningyu and Adetoun, Bolanle Eliz and Adewuyi, Modupe Fal (2018) Monetary intelligence and behavioral economics: The enron effect—love of money, corporate ethical values, corruption perceptions index (CPI), and dishonesty across 31 geopolitical entities. Journal of Business Ethics, 148 (4). pp. 919-937. ISSN 0167-4544 E-ISSN 1573-0697

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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 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 the lowest 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.

Item Type:	Article (Journal)
Additional Information:	6160/60469
Uncontrolled Keywords:	Theory of planned behavior Prospect theory Love of money Behavioral intention/Behavioral ethics Good/bad apples Barrels Risk aversion Risk seeking Cross-cultural Multilevel CPI GDP FDI global econonomic economic pyramid Corruption Human resource management
Subjects:	H Social Sciences > HB Economic Theory > HB201 Value. Utility
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Professor AAhad Osman-Gani
Date Deposited:	02 Jan 2018 14:35
Last Modified:	13 Mar 2019 11:03
URI:	http://irep.iium.edu.my/id/eprint/60469

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