Ethical Financial Reporting Choice: The Influence of Individual Characteristics

Abstract

This study explores the influence individual characteristics identified in prior research have on ethical choice in a financial reporting task. An action-based, multi-metric dependent variable is developed to measure ethical reporting choice. Intermediate accounting students participate in the task as part of a curricular assignment in a revenue recognition module. Results demonstrate that several, but not all, individual characteristics found in prior research do influence accounting students’ ethical revenue recognition choices. Specifically, the external locus-of-control, idealism, consequentialist, and Machiavellian characteristics are found to influence ethical reporting choice.

Citation

Cote, J., Latham, C.K. and Sanders, D. (2013), "Ethical Financial Reporting Choice: The Influence of Individual Characteristics", Advances in Accounting Behavioral Research (Advances in Accounting Behavioural Research, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 115-148. https://doi.org/10.1108/S1475-1488(2013)0000016010