Do Ethical Climate and Machiavellianism Affect Ethical Perceptions of Earnings Management? Evidence from Indonesia
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2014, Vol 2, Issue 3
Abstract
Objective - The purpose of this paper is to examine whether both ethical climate and Machiavellianism influence ethical perceptions of earnings management. Methodology/Technique - The authors surveyed 143 managers, internal auditors, supervisors, finance and accounting staffs employed by listed companies in Indonesia. Findings - The results show that ethical climate negatively affects ethical perceptions of earnings management. Inconsistent with the expectations, Machiavellianism does not influence ethical perceptions. In addition, the results of the indirect effects analyses did not support the mediating effect of ethical climate and Machiavellianism on ethical perceptions through the perceived importance of ethics and social responsibility. Novelty – To our knowledge, this is the first study to address the direct and indirect effect of ethical climate and Machiavellianism on ethical perceptions of earnings management among private industries' employee in Indonesia. The findings have important implications, suggesting that organizational efforts to enhance the ethical climate may actually increase employees' perceptions of the importance of corporate ethics and social responsibility to organizational success. Moreover, by enhancing ethical climate in an organization that encourages ethical behavior may lead employees to be more critical to earnings management.
Authors and Affiliations
Avi Sunani, Bambang Subroto, Yeney W. Prihatiningtias
Keywords
Related Articles
- EP ID EP185546
- DOI -
- Views 168
- Downloads 0
Intention to Migrate Among International Muslim Students in Malaysia
Objective – The primary objective of this study is to examine the association of the push-pull factors, perceived job prospects for students following graduation, religious considerations, and adaptability of internation...
The Role of Technology to Achieve Sustainable Economic Development in Africa
Objective - The purpose of this paper is to study how the technological innovation can achieve and promote sustainable development particularly in Africa. Methodology/Technique - It considers forms of innovation technol...
Exploring the Relationships among Interest Rate, Exchange Rate, and Stock Market in Indonesia
Objective - The purpose of this research is to explore the relationships among interest rate, exchange rate, and stock price in Indonesia. Methodology/Technique - This study used data from the Central Bank of Indonesia...
Construction Project Managers' Perception on Top Job Responsibilities in the Context of Malaysia
Objective - This paper presents an overview of Construction Project Manager's (CPM) responsibility in Malaysia. The construction sector plays a vital role in Malaysian economy and a very significant part of its' sustaina...
The Effects of Organizational Change on Students’ Emotions
Objective – This study aims to examine the effects of perception on technological change, leadership change and structural change towards students’ emotions; and to analyze the mediating effect of experience on perceptio...