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

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-Arocas (), Peter Vlerick (), Adebowale Akande, Michael W. Allen (), Abdulgawi Salim Al-Zubaidi (), Mark G. Borg (), Bor-Shiuan Cheng (), Rosario Correia (), Linzhi Du (), Consuelo Garcia de la Torre (), Abdul Hamid Safwat Ibrahim (), Chin-Kang Jen (), Ali Mahdi Kazem (), Kilsun Kim (), Jian Liang (), Eva Malovics (), Alice S. Moreira (), Richard T. Mpoyi (), Anthony Ugochukwu Obiajulu Nnedum (), Johnsto E. Osagie (), AAhad M. Osman-Gani (), Mehmet Ferhat Özbek (), Francisco José Costa Pereira (), Ruja Pholsward (), Horia D. Pitariu (), Marko Polic (), Elisaveta Gjorgji Sardžoska (), Petar Skobic (), Allen F. Stembridge (), Theresa Li-Na Tang (), Caroline Urbain (), Martina Trontelj (), Luigina Canova (), Anna Maria Manganelli (), Jingqiu Chen (), Ningyu Tang (), Bolanle E. Adetoun () and Modupe F. Adewuyi ()
Additional contact information
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
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
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

Journal of Business Ethics, 2018, vol. 148, issue 4, No 13, 919-937

Abstract: 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.

Keywords: Theory of planned behavior; Prospect theory; Love of money; Behavioral intention/Behavioral ethics; Good/bad apples; Barrels; Risk aversion; Risk seeking; Cross-cultural; Multilevel; CPI; GDP; FDI; Global economic pyramid; Corruption; Human resource management (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10551-015-2942-4

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