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This study aims to clarify the ambiguous nature of equity sensitivity and understand the associations between equity perceptions and the personality domain in organizational behaviour.

The study reviews 56 articles that rendered associations between different HEXACO personality domains and equity sensitivity and proposed a possibility of equity sensitivity being a situation-activated trait.

The domains of Honesty-humility, Conscientiousness and Agreeableness are predominantly associated with equity sensitivity. The domain of Emotionality is also associated but not as significant as the aforementioned domains. Unexpectedly, Extraversion, the domain of social interactions, and Openness to experience showed little to no associations. The transient nature of equity sensitivity has been proposed that postulates that such nature might help predict an individual’s personality characteristics in a given context.

This review is one of the first, to the best of the authors’ knowledge, to describe the associations between equity sensitivity and the HEXACO personality domains. Additionally, the situational nature of equity sensitivity and relationship with the personality traits is proposed.

To examine the Equity Sensitivity Instrument (ESI) and the Equity Preference Questionnaire (EPQ) in a single study in order to see how the two measures are related, as well as how they relate to other variables, in an effort to identify which scale constitutes a better measure of the equity sensitivity construct.

Using a self‐report questionnaire with two samples, 164 students and 186 non‐students, we analyzed the convergent and discriminant validity of the ESI and the EPQ with established measures of Machiavellianism and Positive Affect/Negative Affect. Additionally, the study examined the factor structures of the ESI and the EPQ.

The summated ESI and EPQ scales showed little correlation with each other. Factor analysis of the scales revealed that the EPQ was multidimensional, while the ESI was unidimensional. Mixed findings among factor correlations precluded a definitive assessment of convergent or discriminant validity for the two scales. Many studies limit their investigation to a single population – either students or the general population – yet this study found significant differences in students' scores when compared to non‐students' scores.

This study uses a single self‐administered survey with two samples to examine equity sensitivity; as such, it suffers from the same potential for mono‐method bias as have previous studies on this topic. Differences between student and non‐student responses raise serious concerns; is the difference an artifact of flawed scales, is it indicative of a trait that is situational or that may evolve over time and experience, or is it the result of an anomalous sample? Additional research is needed to tease apart these issues.

This study highlights the differences between two scales purported to measure the same construct. The multidimensionality of the EPQ together with the lack of substantial correlation with the ESI lead one to conclude that the EPQ, while originally proposed to remedy problems with the ESI, has serious weaknesses itself. There is a critical need for further research on how to best measure this important construct.

Economic turbulence brings a significant impact in the mental health of workforce on both developed and developing countries. The purpose of this paper is to explore the impact of equity sensitivity on employee mental health. Innovation is considered to be among the critical drivers for the success and future of organizational existence, therefore this paper also investigates how the equity sensitivity impacts innovation orientation and turnover intentions across two geographies India and Hungary.

An online survey was carried out among Hungarian and Indian students. Students were selected only on the basis of having two to three years of work experience and also from good business and economics colleges from India and Hungary.

The results were analyzed using partial least square–structural equation modelling method to test the hypotheses and it showed that equity sensitivity has a positive effect on employee mental health. The findings of the study highlight that even with significant cultural differences equity sensitivity perception does not differ between Hungary and India.

The relationship between equity sensitivity and employee mental health is an important area to understand in a volatile economy. Innovation orientation and turnover intention both are important to understand the productivity of any organization; this paper is an effort to understand the impact of both variables bringing in the positive or negative impact on the growth of an organization. Limitations of this study include the sample size, cross-sectional data. Future studies can be based on a larger sample size from wider cross-sections and cultures.

Managers need to give importance to understand the equity sensitivity of employee and how it impacts their mental health and well-being. Knowing the volatile nature of economy this becomes very relevant and important for managers and organizations.

This study is important to understand that how two countries that are significantly different in cultural values still have no difference in equity sensitivity perception. Therefore, equity sensitivity is an important determinant to bring innovation and productivity in organizations across cultures.

These findings contribute to literature of equity sensitivity by exploring the impact of equity sensitivity on employee mental health in the context of two countries. Mental health is a concern not only in India but also in Hungarian context as well.

This work aims to use equity theory to explore how consumers assess prosocial actions as part of a mental portfolio of purchases and behaviors in a broader marketplace, seeking balance in market exchanges. Conceptualizing marketing exchange as both an exchange of perceived value and a balance between self- and collective-interest allows for segmentation by consumer sensitivity to equity and sheds light on why prosocial consumption might occur.

Two studies validate and segment consumers via their equity sensitivity. Between-subject designs with samples of consumers and marketing managers validate an equity sensitivity index that segments how people balance self- and collective-interests in marketplace exchange and predicts prosocial consumption choices.

The results indicate that Entitled decision makers are more willing to exchange collective-interest for self-interest and emphasize choices that maximize lower prices for consumers or greater profits for firms in lieu of prosocial outcomes. Benevolent decision makers, however, are more willing to exchange self-interest for collective-interest and support prosocial outcomes.

This work moves beyond research that focuses on attitudes, values and situational factors, instead using equity theory to uncover broader marketplace motivations for prosocial consumption. The research reveals that a motivating force behind prosocial consumption is how much consumers perceive they have given to, and gotten, from, the marketplace. Segmenting the market according to how consumers balance gains and losses provides an alternate approach to studying prosocial consumption, as well as a practical approach to developing targeted marketing strategies.

The purpose of this paper is to provide an analysis of the factor structure of the equity preference questionnaire (EPQ).

Individual level data are collected from two samples (n₁=382, n₂=455) and subjected to confirmatory factor analysis of an a priori two‐factor structure for equity sensitivity. Sample two is randomly split and one half subjected to structural equation modeling.

Superior fit in both samples is found for a two‐factor structure compared to a one‐factor structure. Additionally, in sample two empathy, positive affectivity, and feminine gender role identity related differentially to the factors of entitlement and benevolence.

Samples are comprise of college students. However, the average level of full‐time work experience (sample one 45.6 percent > 1 year, sample two mean 23.57 months) is large and the racial groups in sample two are diverse (76 percent non‐white). Additionally, the data are collected cross‐sectionally so causality cannot be inferred.

Entitlement and benevolence seem to be two different components of equity sensitivity. Thus, people can be high or low on one or both by choosing different comparison others in different situations.

Previous research has not used a confirmatory framework to analyze the EPQ, but rather it focuse on the relationship between scores on the EPQ and other variables or used exploratory factor analysis.

Stakeholders often engage in actions aimed at either benefitting or punishing firms for their behaviour. Such behaviours can have very serious implications for various types of firm performance, including financial performance. Though one might expect that the investigation of possible precursors of such “stakeholder action” would be a priority of researchers in stakeholder theory, to date research within the stakeholder literature directed towards understanding stakeholder behaviour has been somewhat scarce. In this chapter, I present common themes and assumptions that prevail in the existing research on stakeholder action, identify certain important questions concerning such assumptions and suggest avenues for future research on stakeholder behaviour.

The objective of this study is to examine the influence of different facets of needs (i.e. self‐achievement, power, and affiliation needs) on the relationship between individual dispositions (i.e. independence and interdependence of self) and attitudes to equity (i.e. entitled and benevolent). Data were collected from a sample of 243 Japanese university students. Structural equation analysis and simple regression analysis were performed. As a result of structural equation analysis, needs were found to mediate the relationship. The results of simple regression analysis also showed: the stronger interdependence‐oriented people have the stronger desire for affiliation needs; individual dispositions indicated no relationships with self‐achievement and power needs; those with the stronger affiliation needs exhibited both entitled and benevolent attitudes; power needs influenced entitled attitudes; and self‐achievement needs influenced both entitled and benevolent attitudes. In terms of motivation theory, the findings also suggest that people follow expectancy theory instead of equity sensitive theory.

This study aims to extend the literature on psychological contracts, employee mental health, self-control and equity sensitivity among employees in Ghana.

Data for this study came from a sample of 484 employees from an organisation in the telecommunication sector of Ghana. The details of the study were discussed with employees after which they were given the choice to participate in the study.

The present study found that psychological contract breach is directly associated with mental health and indirectly related to mental health through equity sensitivity and self-control.

The findings suggest that psychological contracts are important aspects of the employment relationship that could be used to enhance employee mental health. Furthermore, enhancing employees’ self-control and resolving issues of individuals high on equity sensitivity are effective ways that organisations can deploy to sustain mental health in the face of psychological contract breaches.

Predictions from equity sensitivity theory is reported by Huseman et al. were tested in a laboratory setting. As predicted, Benevolent individuals reported the highest pay satisfaction, perceived pay fairness, and lowest turnover intentions. Contrary to expectations, Entitled individuals did not report lower overall pay satisfaction, perceived pay fairness or higher turnover intentions than Equity Sensitive individuals. All three equity sensitivity groups preferred being over‐rewarded to being equitably rewarded, and were relatively distressed when under‐rewarded. The predicted interaction between equity sensitivity and reward level was not significant. Implications for the management of employees were discussed.

Krull (2004) finds that US multinational corporations (MNCs) increase amounts designated as permanently reinvested earnings (PRE) to maximize reported after-tax earnings and meet earnings targets. We extend this research by examining the relationship between executive equity compensation and the opportunistic use of PRE by US MNCs, and the market reaction to earnings management using PRE designations. Firms use equity compensation to incentivize executives to strive for maximum shareholder wealth. One unintended consequence is that executives may engage in earnings management activities to increase their equity compensation. In this study, we examine whether the equity incentives of management are associated with an increased use of PRE. We predict and find strong evidence that the changes in PRE are positively associated with the portion of top managers' compensation that is tied to stock performance. In addition, we find this relationship to be strongest for firms that meet or beat forecasts, but only with the use of PRE to inflate income, suggesting that equity compensation incentivizes managers to opportunistically use PRE, especially to meet analyst forecasts.

Further, we provide evidence that investors react negatively to beating analysts' forecasts with the use of PRE, suggesting that investors find this behavior opportunistic and not fully convincing. This chapter makes an important contribution to what we know about the joint effects of tax policy, generally accepted accounting principles, and incentive compensation on the earnings reporting process.