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Monetary Intelligence and Behavioral Economics: The Enron Effect—Love of Money, Corporate Ethical Values, Corruption Perceptions Index (CPI), and Dishonesty Across 31 Geopolitical Entities

Author

Listed:
  • Thomas Li-Ping Tang

    (Middle Tennessee State University)

  • Toto Sutarso

    (Middle Tennessee State University)

  • Mahfooz A. Ansari

    (University of Lethbridge)

  • Vivien K. G. Lim

    (National University of Singapore)

  • Thompson S. H. Teo

    (National University of Singapore)

  • Fernando Arias-Galicia

    (Universidad Autónoma del Estado de Morelos)

  • Ilya E. Garber

    (Saratov State University)

  • Randy Ki-Kwan Chiu

    (Hong Kong Baptist University)

  • Brigitte Charles-Pauvers

    (University of Nantes)

  • Roberto Luna-Arocas

    (University of Valencia)

  • Peter Vlerick

    (Ghent University)

  • Adebowale Akande

    (Independent Research Collaboration)

  • Michael W. Allen

    (İpek University)

  • Abdulgawi Salim Al-Zubaidi

    (Sultan Qaboos University)

  • Mark G. Borg

    (University of Malta)

  • Bor-Shiuan Cheng

    (National Taiwan University)

  • Rosario Correia

    (Polytechnic Institute of Lisbon – Portugal)

  • Linzhi Du

    (Lanzhou University)

  • Consuelo Garcia de la Torre

    (Technological Institute of Monterrey)

  • Abdul Hamid Safwat Ibrahim

    (Suez Canal University)

  • Chin-Kang Jen

    (National Sun-Yat-Sen University)

  • Ali Mahdi Kazem

    (Sultan Qaboos University)

  • Kilsun Kim

    (Sogang University)

  • Jian Liang

    (Shanghai Jiao Tong University)

  • Eva Malovics

    (University of Szeged)

  • Alice S. Moreira

    (Federal University of Pará)

  • Richard T. Mpoyi

    (Middle Tennessee State University)

  • Anthony Ugochukwu Obiajulu Nnedum

    (Nnamdi Azikiwe University)

  • Johnsto E. Osagie

    (FAMU)

  • AAhad M. Osman-Gani

    (International Islamic University of Malaysia)

  • Mehmet Ferhat Özbek

    (Gümüşhane University)

  • Francisco José Costa Pereira

    (Lusófona University)

  • Ruja Pholsward

    (Rangsit University)

  • Horia D. Pitariu

    (Babes-Bolyai University)

  • Marko Polic

    (University of Ljubljana)

  • Elisaveta Gjorgji Sardžoska

    (University St. Cyril and Methodius)

  • Petar Skobic

    (ALDI, Inc.)

  • Allen F. Stembridge

    (Andrews University)

  • Theresa Li-Na Tang

    (Tang Global Consulting Group)

  • Caroline Urbain

    (University of Nantes)

  • Martina Trontelj

    (University of Ljubljana)

  • Luigina Canova

    (University of Padua)

  • Anna Maria Manganelli

    (University of Padua)

  • Jingqiu Chen

    (Shanghai Jiao Tong University)

  • Ningyu Tang

    (Shanghai Jiao Tong University)

  • Bolanle E. Adetoun

    (Economic Commission of West Africa)

  • Modupe F. Adewuyi

    (Mercer University)

Abstract

Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty (corruption). Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity of the relationship between love of money and dishonest prospect (dishonesty) may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level (CEV, Level 1) and Corruption Perceptions Index at the macro-level (CPI, Level 2), collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels (high CEV/high CPI), mixed barrels (low CEV/high CPI or high CEV/low CPI), and bad barrels (low CEV/low CPI) display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities (risk seeking of high probability)—the Enron Effect, but the lowest in low CPI entities (risk aversion of low probability). CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics.

Suggested Citation

  • Thomas Li-Ping Tang & Toto Sutarso & Mahfooz A. Ansari & Vivien K. G. Lim & Thompson S. H. Teo & Fernando Arias-Galicia & Ilya E. Garber & Randy Ki-Kwan Chiu & Brigitte Charles-Pauvers & Roberto Luna-, 2018. "Monetary Intelligence and Behavioral Economics: The Enron Effect—Love of Money, Corporate Ethical Values, Corruption Perceptions Index (CPI), and Dishonesty Across 31 Geopolitical Entities," Journal of Business Ethics, Springer, vol. 148(4), pages 919-937, April.
    • Handle: RePEc:kap:jbuset:v:148:y:2018:i:4:d:10.1007_s10551-015-2942-4
    DOI: 10.1007/s10551-015-2942-4
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    References listed on IDEAS

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    Cited by:

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    2. He Peng & Feng Wei, 2020. "How and When Does Leader Behavioral Integrity Influence Employee Voice? The Roles of Team Independence Climate and Corporate Ethical Values," Journal of Business Ethics, Springer, vol. 166(3), pages 505-521, October.
    3. Pier Luigi Marchini & Tatiana Mazza & Alice Medioli, 2020. "Corruption and sustainable development: The impact on income shifting in European international groups," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 717-730, March.
    4. Yalin Mo & Junyu Zhao & Thomas Li-Ping Tang, 2023. "Religious Beliefs Inspire Sustainable HOPE (Help Ourselves Protect the Environment): Culture, Religion, Dogma, and Liturgy—The Matthew Effect in Religious Social Responsibility," Journal of Business Ethics, Springer, vol. 184(3), pages 665-685, May.
    5. Afonso Vieira, Valter & Wolter, Jeremy S. & Falcão Araujo, Clécio & Saraiva Frio, Ricardo, 2023. "What makes the corporate social responsibility impact on Customer–Company identification stronger? A meta-analysis," International Journal of Research in Marketing, Elsevier, vol. 40(2), pages 475-492.

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