Prior research suggests that evaluating employee reactions can help understand the human costs of unethical behavior. However, there is limited research exploring emotional reactions to unethical behavior and no studies that explore emotional reactions when financial statement fraud occurs. In an attempt to fill a gap in the literature, the purpose of this study is to explore whether practicing accountants feel certain negative emotions when asked by a member of management to manipulate earnings. We find that practicing accountants feel emotions of anger, disappointment, and regret when asked by a member of management to complete an action that results in financial statement fraud. The implications of these findings are discussed.
The authors wish to thank the two anonymous reviewers and Cynthia Jeffrey for feedback that improved this manuscript.
Shawver, T.J. and Clements, L.H. (2016), "Emotional Reactions to Financial Statement Fraud", Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 20), Emerald Group Publishing Limited, pp. 115-132. https://doi.org/10.1108/S1574-076520160000020005Download as .RIS
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