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1 – 10 of over 8000Suhaiza Ismail and Zuhudha Rasheed
This paper aims to identify the influence of personal factors on the ethical judgement of future accountants in Malaysia. In particular, there are two research objectives for this…
Abstract
Purpose
This paper aims to identify the influence of personal factors on the ethical judgement of future accountants in Malaysia. In particular, there are two research objectives for this study: first, to investigate the influence of ethical ideology on the ethical judgement of accounting students and second, to investigate the influence of emotional intelligence (EI) on ethical judgement.
Design/methodology/approach
The respondents of the study were final year undergraduate accounting students from three public universities in Malaysia. A survey questionnaire comprising instruments about ethical ideology, EI and ethical judgement was distributed. A total of 205 responses were received and were deemed as useable. To achieve the research objectives, multiple regression was performed.
Findings
The findings indicate that idealism and EI have a positive influence on the ethical judgement. In contrast, the study discovered that relativism influences ethical judgement negatively.
Originality/value
This study fills the research gap as research on personal factors on the ethical judgement of future accountants is very limited and scarce. It gives insights to the various parties concerning how to enhance ethical judgement among future accountants, which ultimately will improve the credibility of the accounting profession.
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Ying Han Fan, Gordon Woodbine and Glennda Scully
The purpose of this study is to determine how Western business practitioners, specifically Australian accounting professionals, identify with the Chinese value concept of guanxi…
Abstract
Purpose
The purpose of this study is to determine how Western business practitioners, specifically Australian accounting professionals, identify with the Chinese value concept of guanxi and the impact of their perceptions of guanxi on their ethical decision-making. This objective is predicated by a belief that aspects of guanxi are similar to the Western concepts of social networking and would be identified by practitioners as an organizational process providing positive benefits to those associated with its application. Further, it is anticipated that concepts of guanxi influence the way Australian accountants form ethical judgements and intentions, precursors to acceptable moral behaviour.
Design/methodology/approach
A cross-sectional questionnaire based on a survey of 111 usable Australian accounting professionals was completed during 2012. A confirmatory factor analysis was used to validate each construct of guanxi before a path analysis was performed.
Findings
Australian accounting professionals associate well with the favour-seeking aspects of guanxi, suggesting an affiliation with Western concepts of social networking. Both groups (i.e. public accountants and private accountants) reject rent-seeking guanxi as clearly unethical. Rent-seeking guanxi is seen to directly influence ethical judgement and intention; however, their favour-seeking guanxi attitudes do not influence ethical judgement or intention, regardless of employment type. Public and private accountants apply guanxi in a differential manner when determining moral intention. Public accountants are viewed as acting spontaneously without adequately considering the consequences (via the judgement phase), which appears to be a function of the nature of their personal association with the case study applied in this research.
Originality/value
The research provides evidence that Australian accounting professionals relate to favour-seeking guanxi as representative of a broader notion of social networking. In this context, the guanxi instrument appears to be amenable to cross-cultural evaluations of group behaviour. Significant differences of opinion exist compared to the prior Chinese studies when unethical practices are considered. The guanxi instrument proves to be a useful tool when examining the group interactions involving Western professionals and also helps establish differences in moral constructions based on employment types.
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Lan Anh Nguyen, Steven Dellaportas, Gillian Maree Vesty, Van Anh Thi Pham, Lilibeth Jandug and Eva Tsahuridu
This research examines the impact of organisational culture on the ethical judgement and ethical intention of corporate accountants in Vietnam.
Abstract
Purpose
This research examines the impact of organisational culture on the ethical judgement and ethical intention of corporate accountants in Vietnam.
Design/methodology/approach
The study relies on survey data collected from 283 practising accountants in Vietnam. Organisational culture was measured using the Organisational Culture Assessment Instrument, developed by Cameron and Quinn (2011). The Instrument is developed based on the competing values framework comprised of four distinct cultures: clan, hierarchy, market and adhocracy. Ethical judgement and ethical intention were measured based on respondent responses to five ethical scenarios, each linked to a principle of professional conduct in the code of ethics.
Findings
The findings indicate that the clan culture (family oriented) is dominant and has a significant positive influence on accountants' ethical judgement and ethical intention. Respondents in the clan culture evaluate scenarios more ethically compared with accountants in the adhocracy and market cultures but not the hierarchy culture. Accountants who emphasise the adhocracy and market cultures display a more relaxed attitude towards unethical scenarios whereas respondents in the hierarchy culture (rule oriented) display the highest ethical attitude.
Research limitations/implications
The code of ethics, its content and how it is interpreted and applied may differ between professions, organisations or cultures.
Originality/value
Organisational research on ethical decision-making is ample but few studies link organisational culture with ethical judgement and ethical intention from the perspective of individual accountants.
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Damai Nasution and Ralf Östermark
The purpose of this paper is to develop and test the scale of auditors’ awareness of the profession’s reputation for independence, defined as the degree to which auditors…
Abstract
Purpose
The purpose of this paper is to develop and test the scale of auditors’ awareness of the profession’s reputation for independence, defined as the degree to which auditors recognise the importance of the reputation for independence and acknowledge the impact of their judgements and decisions on that reputation, and to provide preliminary evidence of an association between auditors’ awareness of the profession’s reputation and auditors’ ethical judgement.
Design/methodology/approach
A seven-item scale was developed to measure auditors’ awareness of the profession’s reputation for independence, and an auditing case was used to measure auditors’ ethical judgement. A survey questionnaire of practising auditors working in auditing firms in Indonesia provides data for testing the validity and reliability of the new scale and proposed hypothesis.
Findings
The findings show that the scale is unidimensional and has satisfied reliability and validity. Moreover, the preliminary evidence of a positive association between the new scale and auditors’ ethical judgement is provided.
Research limitations/implications
Further studies should test the validity and reliability of the scale of awareness of the profession’s reputation for independence with larger data and in different settings. Investigation of the antecedent factors of auditors’ awareness of the profession’s reputation for independence is suggested.
Originality/value
This paper develops a new measure, namely, the awareness of the profession’s reputation for independence. Preliminary evidence to establish an association between that awareness and auditor ethical judgement is provided.
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Ying Han Fan, Gordon Woodbine and Wei Cheng
The purpose of this paper is to further extend research (Fan et al., 2012a) examining the attitudes of Chinese certified public accountants with respect to independence aspects of…
Abstract
Purpose
The purpose of this paper is to further extend research (Fan et al., 2012a) examining the attitudes of Chinese certified public accountants with respect to independence aspects of their professional codes of conduct and their influence on ethical judgement. These attitudes are compared with those of Australian public accountants Particular attention is given to refining a pre-existing instrument to determine measurement invariance.
Design/methodology/approach
A field survey of 81 Australian and 516 Chinese public accountants was conducted including the distribution of a questionnaire. Statistical analysis included confirmatory factor analysis and measurement invariance.
Findings
An analysis of data established the existence of a stable model for identifying the dimensions of independence of mind and independence in appearance within the context of the codes of conduct relevant to both cultures. Chinese accountants demonstrated significantly less concern about audit-client relationships affecting independence in appearance compared to their Australian counterparts. Interestingly, independence of mind was found to positively influence ethical judgement for both groups taken together, although Chinese accountants were the significant contributors to this model outcome.
Research limitations/implications
The relatively small sample of Australian accountants drawn from a limited population base could influence the quality of data analysis. This paper provides a further research direction for re-examining the relationship between Australian public accountants’ attitudes towards their code of professional ethics and their ethical judgements in a significantly larger sample.
Practical implications
This paper is particularly useful to the profession in that it will provide members with better insights into how accountants in different cultural settings view audit independence issues and their relationships with audit clients. Second, this study offers a scale for measuring attitudes towards codes of professional ethics for further cross-cultural studies.
Originality/value
An exploratory research exercise that indicates that accounting practitioners in divergent cultures demonstrate similar concerns about independence issues, although it is believed that guanxi is likely to explain why Chinese accountants are less concerned with independence of appearance issues. The research also presents a validated instrument for examining attitudes towards codes of ethics.
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William E. Shafer, Richard S. Simmons and Rita W. Y. Yip
The purpose of this paper is to document relationships between accountants’ socioeconomic beliefs and attitudes and their professional commitment and ethical decisions in a…
Abstract
Purpose
The purpose of this paper is to document relationships between accountants’ socioeconomic beliefs and attitudes and their professional commitment and ethical decisions in a domain-specific context. Specifically, it investigates the relationships among Chinese tax accountants’ level of belief in the importance of corporate ethics and social responsibility, affective/normative professional commitment and ethical judgements/intentions in a case involving client pressure to commit tax fraud.
Design/methodology/approach
The study employs a survey of tax practitioners employed by public accounting firms in China. The data are analyzed using linear regression and structural equation modelling.
Findings
The stakeholder view, representing both normative and practical support for the importance of corporate ethics and social responsibility, was strongly and positively associated with professional commitment among tax practitioners. The stakeholder view also exhibited a strong negative association with intentions to engage in tax fraud. Tax accountants who possessed higher levels of professional commitment judged tax fraud as more unethical, and such ethical judgements were associated with a lower likelihood of intending to engage in fraud.
Originality/value
The associations between: first, professional accountants’ beliefs in the importance of corporate ethics and social responsibility and their level of professional commitment; and second, professional commitment and tax professionals’ ethical judgements have received little attention in the prior literature. The findings of this study suggest that the integrity of public accounting services may be influenced by relatively broad socioeconomic attitudes, and that this effect may operate partially through commitment to professional values.
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Collins Sankay Oboh, Solabomi Omobola Ajibolade and Olatunde Julius Otusanya
The purpose of this study is to examine the influence of ethical ideological orientation (moral idealism and moral relativism), work sector and types of professional membership on…
Abstract
Purpose
The purpose of this study is to examine the influence of ethical ideological orientation (moral idealism and moral relativism), work sector and types of professional membership on the ethical decision-making (EDM) process of professional accountants in Nigeria.
Design/methodology/approach
The study obtained primary data from 329 professional accountants with the aid of a structured questionnaire containing four scenarios of ethical dilemmas. The data were analysed using descriptive statistical analysis, independent sample t-test, Pearson correlation analysis and multiple regression techniques.
Findings
The results revealed both idealistic and relativistic moral orientation among the accountants surveyed with a higher mean score (>4.0) recorded for moral idealism. Moral idealism was found to have a positive influence, while moral relativism a negative influence on the three stages (ethical recognition, ethical judgement and ethical intention) of EDM examined. Professional accountants with idealistic orientation showed a higher disposition towards making ethical decisions in situations involving ethical dilemmas than those tending towards relativistic orientation. The results also revealed that work sector (private or public) and types of professional membership play significant roles in predicting the EDM process of professional accountants in Nigeria.
Practical implications
The study provides empirical evidence that could be used to support educational and legislative efforts in enhancing the moral ideological orientation of professional accountants, which will, in turn, enhance their EDM processes. The findings could be used to enhance ethics instructions and training of current and prospective professional accountants in educational settings, especially in countries such as Nigeria where there is yet to be a discrete ethics course in the curriculum for accounting undergraduate degree programmes. Professional accounting bodies in Nigeria and other developing countries could use the evidence in this study to strengthen the ethics code for professional accountants.
Originality/value
The study is unique in focussing on professional accountants in developing countries using Nigeria to represent developing countries with high corruption profile and weak institutions and governments and, as such, it contributes to the scarce research output on accounting ethics in developing countries.
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William E. Shafer and Richard S. Simmons
The purpose of this paper is to investigate the effects of attitudes toward the perceived importance of corporate ethics and social responsibility, and Machiavellianism, a general…
Abstract
Purpose
The purpose of this paper is to investigate the effects of attitudes toward the perceived importance of corporate ethics and social responsibility, and Machiavellianism, a general measure of the propensity for manipulative and deceitful behaviour, on tax professionals' willingness to participate in aggressive tax avoidance schemes of corporate clients.
Design/methodology/approach
The paper is based on a survey of tax professionals in Hong Kong.
Findings
The paper finds that Machiavellianism affects tax advisors' expressed viewpoints toward the importance of corporate ethics and social responsibility, which affect professional judgements toward aggressive tax minimisation. As anticipated, high Machiavellians are more likely to endorse the traditional “stockholder view” of corporate responsibility (which holds that corporations have little responsibility beyond maximising their profits), and less likely to support the “stakeholder view” (which recognises corporate responsibilities to a broader range of potential stakeholders). The stockholder view (but not the stakeholder view) of corporate responsibility mediates the relationship between Machiavellianism and ethical/social responsibility judgements. Machiavellianism also had significant direct effects on ethical and social responsibility judgements.
Originality/value
The paper provides insights into the decision processes used to justify aggressive tax minimisation strategies. The findings indicate that commonly articulated views toward corporate ethics and social responsibility may be used to support unethical strategies. In particular, the finding that the stockholder view mediates the relationship between Machiavellianism and ethical/social responsibility judgements suggests that the stockholder view may be adopted to rationalise overly aggressive tax avoidance.
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Nirupika Liyanapathirana and Mary Low
This study aims to examine the determinants of ethical decision-making (EDM) of professional accountants in Sri Lanka, drawing on Rest’s (1986) four-component EDM model. The level…
Abstract
Purpose
This study aims to examine the determinants of ethical decision-making (EDM) of professional accountants in Sri Lanka, drawing on Rest’s (1986) four-component EDM model. The level of corporate collapses and fraud, coupled with the high level of corruption in Sri Lanka, has highlighted the importance and the timely nature of this research in the EDM processes of Sri Lankan accountants.
Design/methodology/approach
Data was collected from a sample of 315 accountants through a questionnaire survey that included four written ethical vignettes and was analysed using partial least square-structural equation modelling techniques.
Findings
The findings revealed a significant relationship between ethical awareness and ethical judgement, providing support for Rest’s model. However, the study does not support Rest’s model on the direct relationship between ethical judgement and ethical intention. Intrinsic religiosity and moral intensity significantly influenced the ethical awareness of accountants. Several determinants including accountants’ age, education, intrinsic religiosity, organisational ethical culture, familiarity with the professional ethical code and moral intensity influenced ethical judgement. However, the findings did not report any significant relationships between the study’s variables and ethical intention.
Originality/value
The study adds to the existing literature by providing a bigger picture of how various determinants work together in one EDM model and demonstrating that the EDM of accountants is multifaceted. The new finding on an insignificant relationship between ethical judgement and ethical intention implies that the Rest’s EDM process may be mediated and moderated by other constraints blocking accountants’ intention to act due to various pressures in a corrupt society, Sri Lanka, where accountants operate.
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Considers past research undertaken in the area of adult moral andethics education, in order to establish whether moral judgement andethical behaviour can be learnt by adults…
Abstract
Considers past research undertaken in the area of adult moral and ethics education, in order to establish whether moral judgement and ethical behaviour can be learnt by adults through an education experience. Also seeks to identify those education media which best facilitate learning of good moral behaviour and ethical judgement. Concludes that research to date has not adequately proved the widely assumed link between teaching and learning of moral judgement and ethical behaviour. This link is important, particularly when education is perceived by many to be the best means of developing good moral judgement and ethical behaviour in the modern business environment. Raises a number of additional issues related to the topic and suggests several areas of future research opportunity.
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