Department/School
Accounting
Date of this version
2020
Document Type
Article
Keywords
ethical decision-making, culture, Middle East, MENA, risk taking propensity, path analysis
DOI
https://doi.org/10.1016/j.intaccaudtax.2020.100350
Abstract
Extending prior ethics frameworks, we conduct a cross-cultural survey to examine ethical decision-making and risk taking propensity in the United States (US) and the Middle East and North Africa (MENA). Although there is a significant body of research describing the ethical decision-making of individuals in the US, little is known regarding those in MENA. With increasing business and political involvement between the US and MENA, it is critical that we better understand whether the ethical decision-making of accountants differs between these regions. Additionally, we add to the examination of ethical decision-making by introducing risk taking propensity as an antecedent that is particularly relevant to the accounting domain. Using path analysis with samples of accounting students in the US and MENA, we find support for our model where region and risk taking propensity influence ethical awareness. Ethical awareness influences judgment, which goes on to influence intention to act in an ethically challenging management accounting situation. Additionally, inconsistent mediation is indicated, where the direct effect and indirect effect (through risk taking propensity) of region on awareness have opposite influences. In this way, risk taking propensity has a suppression effect on the impact of region on ethical behavior.
Volume
41
Published in
Journal of International Accounting, Auditing and Taxation
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Citation/Other Information
Vinson, J. M., Curtis, M. B., Conover, T. L., & Chui, L. (2020). Ethical relativism in accounting: A cross-cultural examination of the influence of culture and risk taking propensity on ethical decision-making. Journal of International Accounting, Auditing and Taxation, 41. https://doi.org/10.1016/j.intaccaudtax.2020.100350