TY - CHAP
T1 - Behavioral economics and monetary wisdom
T2 - A cross-level analysis of monetary aspiration, pay (dis)satisfaction, risk perception, and corruption in 32 nations
AU - Tang, Thomas Li Ping
AU - Li, Zhen
AU - Özbek, Mehmet Ferhat
AU - Lim, Vivien Kim Geok
AU - Teo, Thompson Sian Hin
AU - Ansari, Mahfooz A.
AU - Sutarso, Toto
AU - Garber, Ilya E.
AU - Chiu, Randy Ki Kwan
AU - Charles-Pauvers, Brigitte
AU - Urbain, Caroline
AU - Luna-Arocas, Roberto
AU - Chen, Jingqiu
AU - Tang, Ningyu
AU - Tang, Theresa Li Na
AU - Arias-Galicia, Fernando
AU - De La Torre, Consuelo Garcia
AU - Vlerick, Peter
AU - Akande, Adebowale
AU - Al-Zubaidi, Abdulqawi Salim
AU - Kazem, Ali Mahdi
AU - Borg, Mark G.
AU - Cheng, Bor Shiuan
AU - Du, Linzhi
AU - Ibrahim, Abdul Hamid Safwat
AU - Kim, Kilsun
AU - Malovics, Eva
AU - Mpoyi, Richard T.
AU - Nnedum, Obiajulu Anthony Ugochukwu
AU - Sardžoska, Elisaveta Gjorgji
AU - Allen, Michael W.
AU - Correia, Rosário
AU - Jen, Chin Kang
AU - Moreira, Alice S.
AU - Osagie, Johnston E.
AU - Osman-Gani, AAhad M.
AU - Pholsward, Ruja
AU - Polic, Marko
AU - Skobic, Petar
AU - Stembridge, Allen F.
AU - Canova, Luigina
AU - Manganelli, Anna Maria
AU - Pitariu, Adrian H.
AU - Pereira, Francisco José Costa
N1 - Publisher Copyright:
© 2024 Elsevier Inc. All rights are reserved including those for text and data mining AI training and similar technologies.
PY - 2024/5/16
Y1 - 2024/5/16
N2 - Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains–losses domain and high–low probability. Pay dissatisfaction (in the losses) excites dishonesty in the name of justice at the individual level. Corruption Perceptions Index, CPI, signals a high–low probability of getting caught for dishonesty at the country level. We theorize: Decision-makers adopt avaricious love of money aspiration as a lens and frame dishonesty in the gains–losses domain (pay satisfaction–dissatisfaction, Level 1) and high–low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction curbs dishonesty across nations consistently. Cross-level three-dimensional visualization demonstrates (6500 managers in 32 countries across six continents): With high aspiration, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations; pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities—maximizing expected utility. Low aspiration and high pay satisfaction consistently create low dishonesty—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations, providing novel insights to business ethics, the environment, and responsibility.
AB - Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains–losses domain and high–low probability. Pay dissatisfaction (in the losses) excites dishonesty in the name of justice at the individual level. Corruption Perceptions Index, CPI, signals a high–low probability of getting caught for dishonesty at the country level. We theorize: Decision-makers adopt avaricious love of money aspiration as a lens and frame dishonesty in the gains–losses domain (pay satisfaction–dissatisfaction, Level 1) and high–low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction curbs dishonesty across nations consistently. Cross-level three-dimensional visualization demonstrates (6500 managers in 32 countries across six continents): With high aspiration, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations; pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities—maximizing expected utility. Low aspiration and high pay satisfaction consistently create low dishonesty—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations, providing novel insights to business ethics, the environment, and responsibility.
KW - Attitude
KW - Avaricious monetary aspiration
KW - Behavioral economics
KW - Common method variance
KW - Control
KW - Corruption
KW - Country level
KW - CPI
KW - Cross-cultural
KW - Cross-level analysis
KW - Dishonesty
KW - Environmental context
KW - Equity perceptions
KW - Gains–losses
KW - Global
KW - Greedy desires
KW - High–low probability of risk
KW - Intention
KW - International
KW - Justice
KW - Level 1
KW - Level 2
KW - Love of money attitude
KW - Measurement invariance
KW - Monetary wisdom
KW - Pay satisfaction–dissatisfaction
KW - Prospect theory
KW - Risk-aversion
KW - Risk-taking
KW - S Curve
KW - Social norms
KW - The certainty effect
KW - The possibility effect
KW - Theory of planned behavior
KW - TPB
KW - Transparency
KW - Unethicality
KW - Wrongdoing
UR - http://www.scopus.com/inward/record.url?scp=85206158659&partnerID=8YFLogxK
U2 - 10.1016/B978-0-443-15453-9.00004-8
DO - 10.1016/B978-0-443-15453-9.00004-8
M3 - Chapter
AN - SCOPUS:85206158659
SN - 9780443154539
SP - 215
EP - 237
BT - Monetary Wisdom
A2 - Tang, Thomas Li-Ping
PB - Elsevier
ER -
