nach oben

Asian Journal of Business Ethics

Erschienen in:

22.06.2021

The roles of self-construal in sharpening reputation judgment: an experimental study on earnings management

verfasst von: Ida Nur Aeni, Supriyadi, Heri Yanto

Erschienen in: Asian Journal of Business Ethics | Ausgabe 2/2021

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This study aims to investigate the role of self-construal in sharpening reputation judgment on earnings management cases. This study involves a personality variable that can provide sharper insights into individual assessments, namely self-construal. The study uses an experimental case with involved participants to judge the ethics of earnings management done by other managers (the target managers). Participants of this study consist of 109 master’s degree students majoring in accounting and management who acts as fellow managers. Participants provide ethical judgment and reputation judgment of the target managers. This study indicates that ethical judgment on earnings management behavior differs depending on the target managers’ self-construal. In addition, ethical judgment has a positive and significant effect on reputation judgment. The following analysis showed that ethical judgment mediates the effect of earnings management behavior that self-construal moderates on reputation judgment. Studies that highlight the impact of managers’ reputation engaging in earnings management are still limited. This study used a behavioral approach, especially involving self-construal, to scrutinize the behavior of individuals within the organization, which is previous studies have not yet involved that personality factor. This research’s results imply that a manager’s response to peer’s behavior is helpful to design an appropriate management control system for organizations. This study only used earnings management scenarios in order to increase earnings. Earnings management can be in the form of actions to increase or decrease earnings.

Vorheriger Artikel The Matthew Effect in monetary wisdom

Nächster Artikel Is social desirability bias important for effective ethics research? A review of literature

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

Aeni, I. N., & Supriyadi, S. (2018). Dampak Perilaku Manajemen Laba terhadap Penilaian Reputasi Manajer: Studi Eksperimental Perspektif Internal Labor Market. Jurnal Akuntansi Dan Bisnis, 18(1), 1–13.CrossRef

Alexander, N., & Hengky. (2017). Factors affecting earnings management in the Indonesian stock exchange. J. Bank. Fin. Review, 2(2), 8–14.CrossRef

Al-Faryan, M. A. S., & Dockery, E. (2017). Ownership structure and corporate governance: What does the data reveal about Saudi listed firms? Corporate Ownership and Control, 14(4), 413–424.CrossRef

Baron, R. M., & Kenny, D. A. (1996). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.CrossRef

Belski, W. H., Beams, J. D., & Brozovsky, J. a. (2008). Ethical judgments in accounting: An examination on the ethics of managed earnings. The Journal of Global Business Issues, 2(2), 59–68.

Buckley, M. R., Harvey, M. G., & Beu, D. S. (2000). The role of pluralistic ignorance in the perception of unethical behavior. Journal of Business Ethics, 23(4), 353–364.CrossRef

Chen, Y., & Moosmayer, D. C. (2020). “When guilt is not enough: Interdependent self-construal as moderator of the relationship between guilt and ethical consumption in a Confucian context”, Journal of Business Ethics. Springer Netherlands, 161(3), 551–572.

Cojuharenco, I., Shteynberg, G., Gelfand, M., & Schminke, M. (2012). Self-construal and unethical behavior. Journal of Business Ethics, 109(4), 447–461.CrossRef

Conroy, S. J., & Emerson, T. L. N. (2004). Business ethics and religion: Religiosity as a predictor of ethical awareness among students. Journal of Business Ethics, 50, 383–396.CrossRef

Edi, Y. S., & Jessica, V. (2020). The Effect of firm characteristics and good corporate governance characteristics to earning management behaviors. Journal of Accounting Finance and Auditing Studies (JAFAS), 6(2), 31–49.CrossRef

Ferris, G.R., Harris, J.N., Russell, Z.A., Iii, B.P.E. and Arthur, D. (2014), “The role of reputation in the organizational sciences: A multilevel review, construct assessment, and research directions”, Research in Personnel and Human Resources Management, Vol. 32, pp. 241–303.

Fischer, M., & Rosenzweig, K. (1995). Attitudes of students and accounting practitioners concerning the ethical acceptability of earnings management. Journal of Business Ethics, 14(6), 433–444.CrossRef

Ghazali, A.W., Shafie, N.A. and Sanusi, Z.M. (2015), “Earnings management: An analysis of opportunistic behaviour, monitoring mechanism and financial distress”, Procedia Economics and Finance, Elsevier B.V., Vol. 28 No. April, pp. 190–201.

Gunny, K. A. (2010). The relation between earnings management using real activities manipulation and future performance: Evidence from meeting earnings benchmarks. Contemporary Accounting Research, 27(3), 855–888.CrossRef

Habbash, m. s., & Alghamdi, S. (2015). The perception of earnings management motivations in Saudi public firms. Journal of Accounting in Emerging Economies, 5(1), 1–40.CrossRef

Han, S., Kang, T., Salter, S., & Yoo, Y. K. (2010). “A cross-country study on the effects of national culture on earnings management”, Journal of International Business Studies. Palgrave Macmillan, 41(1), 123–141.

Harvey, J. H., & Smith, W. P. (1977). Social Psychology An Attributional Approach. The C V. Mosby Company.

Hasnan, S., Mohd Razali, M. H., & Mohamed Hussain, A. R. (2020). The effect of corporate governance and firm-specific characteristics on the incidence of financial restatement. Journal of Financial Crime, 3, available at. https://doi.org/10.1108/JFC-06-2020-0103.

Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365–383.CrossRef

Heider, F. (1958). The psychology of interpersonal relations. John Willey & SOns.

Heidhues, E., & Patel, C. (2011). “A critique of Gray’s framework on accounting values using Germany as a case study”, Critical Perspectives on Accounting. Elsevier Ltd, 22(3), 273–287.

Heinz, P., Patel, C. and Hellmann, A. (2013), “Some theoretical and methodological suggestions for studies examining accountants’ professional judgments and earnings management”, Advances in Accounting, Incorporating Advances in International Accounting, Elsevier B.V., Vol. 29 No. 2, pp. 299–311.

Hoyt, C. L., & Price, T. L. (2015). Ethical decision making and leadership: Merging social role and self-construal perspectives. Journal of Business Ethics, 126(4), 531–539.CrossRef

Johnson, E. N., Fleischman, G. M., Valentine, S., & Walker, K. B. (2012). Managers’ ethical evaluations of earnings management and its consequences. Contemporary Accounting Research, 29(3), 910–927.CrossRef

Jones, E. E., & Davis, K. E. (1965). From acts to dispositions: the attribution process in social psychology. Advances in Experimental Social Psychology, 2, 219–266.CrossRef

Kaplan, S. E. (2001). Ethically related of by observers earnings judgments. Journal of Business, 32(4), 285–298.

Kaplan, S.E. and Ravenscroft, S.P. (2004), “The reputation effects of earnings management in the internal labor market”, Business Ethics Quarterly, Vol. 14 No. May, pp. 453–478.

Kaplan, S. E., McElroy, J. C., Ravenscroft, S. P., & Shrader, C. B. (2007). Moral judgment and causal attributions: Consequences of engaging in earnings management. Journal of Business Ethics, 74(2), 149–164.CrossRef

Kelley, H. H., & Michela, J. L. (1980). Attribution theory and research. Annual Review of Psychology, 31(1), 457–501.CrossRef

Malle, B.F. (2011), Time to give up the dogmas of attribution. an alternative theory of behavior explanation, advances in experimental social psychology, 1st ed., Vol. 44, Elsevier Inc., available at: https://doi.org/10.1016/B978-0-12-385522-0.00006-8.

Markus, H. R., & Kitayama, S. (1991). Culture and the self: Implications for cognition, emotion, and motivation. Psychological Review, 98(2), 224–253.CrossRef

Martinov-Bennie, N., & Mladenovic, R. (2015). Investigation of the impact of an ethical framework and an integrated ethics education on accounting students’ ethical sensitivity and judgment. Journal of Business Ethics, 127(1), 189–203.CrossRef

Matsumoto, D. (1999). Culture and self: An empirical assessment of Markus and Kitayama’s theory of independent and interdependent self-construals. Asian Journal of Social Psychology, 2(3), 289–310.CrossRef

Matsuura, S. (2008). On the relations between real earnings management and accounting earnings management: Income smoothing perspective. Journal of International Business Research, 7(3), 63–77.

McPhail, K., & Walters, D. (2009). Accounting and Business Ethics. Routledge.

Merchant, K. A., & Rockness, J. (1994). The ethics of managing earnings: An empirical investigation. Journal of Accounting and Public Policy, 13(1), 79–94.CrossRef

Noval, L. J., & Stahl, G. K. (2015). Accounting for proscriptive and prescriptive morality in the workplace: The double-edged sword effect of mood on managerial ethical decision making. Journal of Business Ethics, 142(3), 589–602.CrossRef

Pacheco Paredes, A. A., & Wheatley, C. (2017). The influence of culture on real earnings management. International Journal of Emerging Markets, 12(1), 38–57.CrossRef

Pan, P., & Patel, C. (2017). Construal of self and Chinese accountants’ aggressive financial reporting judgments. Accounting, Auditing & Accountability Journal, 30(8), 1771–1795.CrossRef

Parson, C., & Artistico, D. (2014). Self-construal, ethical climate and unethical decision making: Whether ‘I am I’ or ‘I am we’ matters. Journal of Organizational Psychology, 14(1), 26–39.

Patel, C. (2004). “Some theoretical and methodological suggestions for cross-cultural accounting studies”, International Journal of Accounting. Auditing and Performance Evaluation, 1(1), 61–84.CrossRef

Rest, J. R., & Narvaez, D. (2008). Moral development in the professions psychology and applied ethics. Lawrence Erlbaum Associates, Inc..

Reynolds, S. J. (2006). Moral awareness and ethical predispositions: Investigating the role of individual differences in the recognition of moral issues. Journal of Applied Psychology, 91(1), 233–243.CrossRef

Ross, L., Greene, D., & House, P. (1977). The ‘false consensus effect’: An egocentric bias in social perception and attribution processes. Journal of Experimental Social Psychology, 13, 279–301.CrossRef

Ryan, J., & Boscia, M. W. (2003). Using attribution theory to help frame moral dilemmas: An empirical test of the President Clinton – Monica Lewinski case. Teaching Business Ethics, 7(2), 123–137.CrossRef

Saal, F. E., Downey, R. G., & Lahey, M. A. (1980). Rating the ratings: Assessing the psychometric quality of rating data. Psychological Bulletin, 88(2), 413–428.CrossRef

Stanga, K. G., & Kelton, A. S. (2008). An attributional analysis of ethicality judgments of earnings management. Research on Professional Responsibility and Ethics in Accounting, 13, 87–112.

Valentine, S., Fleischman, G. M., Sprague, R., & Godkin, L. (2010). Exploring the ethically of firing employees who blog. Human Resource Management, 49(1), 87–108.CrossRef

Watts, R., & Zimmerman, J. (1990). Positive accounting theory: A ten year perspective. Accounting Review, 65(1), 131–156.

Wimelda, L., & Chandra, A. (2018). Opportunistic behavior, external monitoring mechanisms, corporate governance, and earnings management. Accounting & Finance Review (AFR), 3(1), 49–57.

Zinko, R., Ferris, G. R., Humphrey, S. E., Meyer, C. J., & Aime, F. (2012). Personal reputation in organizations: Two-study constructive replication and extension of antecedents and consequences. Journal of Occupational and Organizational Psychology, 85(1), 156–180.CrossRef

Titel: The roles of self-construal in sharpening reputation judgment: an experimental study on earnings management
verfasst von: Ida Nur Aeni
Supriyadi
Heri Yanto
Publikationsdatum: 22.06.2021
Verlag: Springer Netherlands
Erschienen in: Asian Journal of Business Ethics / Ausgabe 2/2021
Print ISSN: 2210-6723
Elektronische ISSN: 2210-6731
DOI: https://doi.org/10.1007/s13520-021-00127-w

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 2/2021

The impacts of Covid-19 on foreign domestic workers in Hong Kong

Correction to: Does corporate social responsibility affect Generation Z purchase intention in the food industry

Multiple perspectives of measuring organisational value congruence

Is social desirability bias important for effective ethics research? A review of literature

Exploring the role of abusive supervision and customer mistreatment with a felt obligation on the knowledge hiding behaviours among front-line employees: a group analysis

Determinants of firm’s holding female directors: evidence from Australia