TY - CHAP
T1 - Behavioral economics and Monetary Wisdom
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 Kim Geok
AU - Teo, Thompson Sian Hin
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, Abdulqawi Salim
AU - Borg, Mark G.
AU - Cheng, Bor Shiuan
AU - Correia, Rosário
AU - Du, Linzhi
AU - De La Torre, Consuelo Garcia
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, Obiajulu Anthony Ugochukwu
AU - Osagie, Johnston E.
AU - Osman-Gani, AAhad 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:
© 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 - Monetary Wisdom asserts that individuals apply their deep-rooted values (the love of money attitudes, avaricious monetary aspirations) to frame critical concerns in the immediate-proximal and omnibus-distal contexts and strategically select certain options to maximize expected utility and ultimate serenity across context, people, and time at the individual, organizational, and national-global levels. This study explores the dark side of decision-making, e.g., avaricious monetary aspirations and corruption (dishonesty). Corruption involves greed, money, and risky decision-making. It is a risky prospect, involving a 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: Two levels of the 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, jointly impact the magnitude and intensity of the relationships between love of money and dishonesty. Based on 6382 managers in 31 geopolitical entities across 6 continents, our cross-level three-way interaction effect illustrates the following discoveries: 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 a low, medium, and high magnitude of dishonesty, respectively. Context matters. 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 in the high probability context)—the Enron Effect, but the lowest in low CPI entities (risk aversion in the low probability context). Interestingly, 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 norms, revealing critical implications to the field of business ethics. This chapter makes robust theoretical and practical contributions to Monetary Wisdom and business ethics.
AB - Monetary Wisdom asserts that individuals apply their deep-rooted values (the love of money attitudes, avaricious monetary aspirations) to frame critical concerns in the immediate-proximal and omnibus-distal contexts and strategically select certain options to maximize expected utility and ultimate serenity across context, people, and time at the individual, organizational, and national-global levels. This study explores the dark side of decision-making, e.g., avaricious monetary aspirations and corruption (dishonesty). Corruption involves greed, money, and risky decision-making. It is a risky prospect, involving a 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: Two levels of the 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, jointly impact the magnitude and intensity of the relationships between love of money and dishonesty. Based on 6382 managers in 31 geopolitical entities across 6 continents, our cross-level three-way interaction effect illustrates the following discoveries: 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 a low, medium, and high magnitude of dishonesty, respectively. Context matters. 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 in the high probability context)—the Enron Effect, but the lowest in low CPI entities (risk aversion in the low probability context). Interestingly, 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 norms, revealing critical implications to the field of business ethics. This chapter makes robust theoretical and practical contributions to Monetary Wisdom and business ethics.
KW - Barrels
KW - Behavioral intention/behavioral ethics
KW - Corruption
KW - CPI
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 - https://shop.elsevier.com/books/monetary-wisdom/li-ping-tang/978-0-443-15453-9
UR - http://www.scopus.com/inward/record.url?scp=85206194165&partnerID=8YFLogxK
U2 - 10.1016/B978-0-443-15453-9.00019-X
DO - 10.1016/B978-0-443-15453-9.00019-X
M3 - Chapter
AN - SCOPUS:85206194165
SN - 9780443154539
SP - 193
EP - 213
BT - Monetary Wisdom
A2 - Tang, Thomas Li-Ping
PB - Elsevier
ER -
