Investigating the role of theory of planned behavior and Machiavellianism in earnings management intentions

Kangan Sayal and Gurparkash Singh

Accounting Research Journal, 2020, vol. 33, issue 6, 653-668

Abstract: Purpose - The purpose of this study is to develop and empirically test the earnings management (EM) behavior model to investigate the personal psychological factors that influence individuals’ intentions to engage in EM. Design/methodology/approach - Following a review of literature, personal-psychological factors influencing EM intentions were identified within the scope of the theory of planned behavior (TPB) and a dark triad of personality theory. The survey data from 153 MBA students were analyzed using partial least square-structural equation modeling. Findings - The results revealed perceived behavior control is significant in influencing individuals’ EM intentions followed by attitude toward behavior and subjective norms. The results, however, do not support the relationship between moral obligation and intentions to engage in EM and also reported a negative relationship between Machiavellianism and individuals’ EM intentions. Practical implications - The proposed model will enable organizations to develop focused training programs for managers to reduce EM behavior. It will also help educators in training students to positively shape their ethical behavior and make them more reciprocal toward others and their work environment. Originality/value - The study develops the EM behavior model and suggests that TPB and Machiavellianism personality traits provide a useful framework to identify the personal psychological factors influencing individuals’ EM intentions. Further, the empirical testing of the model documents and contributes toward a better understanding of the personal psychological factors significantly influencing individuals’ EM intentions.

Keywords: Earnings management; Ethical behavior; Theory of planned behavior; Machiavellianism; Intentions (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-08-2019-0153

DOI: 10.1108/ARJ-08-2019-0153

Access Statistics for this article

Accounting Research Journal is currently edited by Professor Reza Monem

More articles in Accounting Research Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().