540
Views
1
CrossRef citations to date
0
Altmetric
ORIGINAL RESEARCH

The Impact of Firm’s Unethical Behavior in Investment Decisions Among Young Investors in China

, &
Pages 3427-3443 | Received 03 Aug 2022, Accepted 24 Nov 2022, Published online: 28 Nov 2022

References

  • Lin Y, Huang C, Wei Y. Perfectionist decision-making style and ethical investment willingness: a two-factor causal mediation model, management decision. J Bus Ethics. 2018;56(3):534–549.
  • den Hond F, de Bakker F. Ideologically motivated activism: how activist groups influence corporate social change activities. Acad Manage Rev. 2007;32(3):901–924. doi:10.5465/amr.2007.25275682
  • Lewis A, Mackenzie C. Support for investor activism among UK ethical investors. J Bus Ethics. 2000;24(3):215–222. doi:10.1023/A:1006082125886
  • Mackey TB, Mackey A, Christensen LJ, Lepore JJ. Inducing corporate social responsibility: should investors reward the responsible or punish the irresponsible? J Bus Ethics. 2022;175(1):59–73. doi:10.1007/s10551-020-04669-0
  • Baker B, Derfler-Rozin R, Pitesa M, Johnson M. Stock market responses to unethical behavior in organizations: an organizational context model. Organ Sci. 2019;30(2):319–336. doi:10.1287/orsc.2018.1244
  • Baucus N. Can illegal corporate behavior be predicted? An event history analysis. Acad Manage J. 1991;34(1):9–36. doi:10.2307/256300
  • Vardi Y. The effects of organizational and ethical climates on misconduct at work. J Bus Ethics. 2001;29(4):325–337. doi:10.1023/A:1010710022834
  • Neill JD, Scott Stovall O, Jinkerson DL. A critical analysis of the accounting industry’s voluntary code of conduct. J Bus Ethics. 2005;59(1):101–108.
  • Williams G, Zinkin J. The effect of culture on consumers’ willingness to punish irresponsible corporate behaviour: applying Hofstede’s typology to the punishment aspect of corporate social responsibility. Bus Ethics. 2008;17(2):210–226. doi:10.1111/j.1467-8608.2008.00532.x
  • Greve HR, Palmer D, Pozner JE. Organizations gone wild: the causes, processes, and consequences of organizational misconduct. Acad Manag Ann. 2010;4(1):53–107. doi:10.5465/19416521003654186
  • Hill JA, Eckerd S, Wilson D, Greer B. The effect of unethical behavior on trust in a buyer-supplier relationship: the mediating role of psychological contract violation. J Oper Manag. 2009;27(4):281–293. doi:10.1016/j.jom.2008.10.002
  • Overall J. Unethical behavior in organizations: empirical findings that challenge CSR and egoism theory. Bus Ethics. 2016;25(2):113–127. doi:10.1111/beer.12110
  • Cheung MF, To WM. The effect of consumer perceptions of the ethics of retailers on purchase behavior and word-of-mouth: the moderating role of ethical beliefs. J Bus Ethics. 2021;171(4):771–788. doi:10.1007/s10551-020-04431-6
  • Carberry EJ, Engelen PJ, van Essen M. Which firms get punished for unethical behavior? Explaining variation in stock market reactions to corporate misconduct. Bus Ethics Q. 2018;28(2):119–151. doi:10.1017/beq.2017.46
  • Thaler RH. From homo economicus to homo sapiens. J Econ Perspect. 2000;14:133–141. doi:10.1257/jep.14.1.133
  • Kahneman D, Tversky A. Prospect Theory: an Analysis of Decision under Risk. Econometrica. 1979;47(2):263–292. doi:10.2307/1914185
  • Brown B. Do stock market investors reward companies with reputations for social performance? Corp Reput Rev. 1998;1(3):271–280. doi:10.1057/palgrave.crr.1540048
  • Banaji MR, Bhaskar R. Implicit stereotypes and memory: the bounded rationality of social beliefs. In: Schacter DL, Scarry E, editors. Memory, Brain, and Belief. Cambridge, MA: Harvard University Press; 2000:139–175.
  • Banaji MR, Bazerman M, Chugh D. How (Un)ethical are you? Harvard Bus Rev. 2003;81(12):56–64.
  • Chugh D, Bazerman MH, Banaji MR. Bounded ethicality as a psychological barrier to recognizing conflicts of interest. In: Moore DA, Cain DM, Loewenstein G, Bazerman MH, editors. Conflicts of Interest: Challenges and Solutions in Business, Law, Medicine and Public Policy. Cambridge: Cambridge University Press; 2005:74–95.
  • Reynolds SJ, Leavitt K, DeCelles KA. Automatic ethics: the effects of implicit assumptions and contextual cues on moral behavior. J Appl Psychol. 2010;95(4):752–760. doi:10.1037/a0019411
  • Mason C, Harrison R. Closing the regional equity gap: the role of informal venture capital. Small Bus Econ. 1995;7(2):153–172. doi:10.1007/BF01108688
  • Sohl JE, The US. Angel and venture capital market: recent trends and developments. J Priv Equity. 2003;6(2):7–17. doi:10.3905/jpe.2003.320035
  • Vanacker T, Manigart S. Pecking order and debt capacity considerations for high-growth companies seeking financing. Small Bus Econ. 2010;35(1):53–69. doi:10.1007/s11187-008-9150-x
  • Tetlock PC. Does public financial news resolve asymmetric information? Rev Financ Stud. 2010;23(9):3520–3557. doi:10.1093/rfs/hhq052
  • Jonsson S, Buhr H. The limits of media effects: field positions and cultural change in a mutual fund market. Organ Sci. 2011;22(2):464–481. doi:10.1287/orsc.1100.0553
  • Flammer C. Corporate social responsibility and shareholder reaction: the environmental awareness of investors. Acad Manage J. 2012;56(3):758–781. doi:10.5465/amj.2011.0744
  • Dai L, Parwada JT, Zhang B. The governance effect of the media’s news dissemination role: evidence from insider trading. J Account Res. 2015;53(2):331–366. doi:10.1111/1475-679X.12073
  • El Ghoul S, Guedhami O, Nash R, Patel A. New evidence on the role of the media in corporate social responsibility. J Bus Ethics. 2016;154(4):1051–1079. doi:10.1007/s10551-016-3354-9
  • Watts RL, Zimmerman JL. Positive Accounting Theory. Oxford: Prentice-Hall Press; 1986.
  • Becker GS. Crime and punishment: economic approach. J Polit Econ. 1968;76(2):169–217. doi:10.1086/259394
  • Eccles JS. Expectancies, values and academic choices: origins and changes. In: Spence JT, editor. Achievement and Achievement Motives. San Francisco: Freeman; 1983:87–134.
  • Wigfield A, Eccles JS. The development of achievement task values: a theoretical analysis. Dev Rev. 1992;12(3):265–310. doi:10.1016/0273-2297(92)90011-P
  • Freeman RE. Strategic management: a stakeholder theory. J Manage Stud. 1984;39(1):1–21.
  • Freeman RE, Philips RA. Stakeholder theory: a libertarian defense. Bus Ethics Q. 2002;12(3):331–349. doi:10.2307/3858020
  • Feng W, Cai J. The lack and reconstruction of enterprise morality in China. Econ Res Guide. 2011;14:34–36. Chinese.
  • Wei X. The summary of domestic corporate moral studies (in Chinese). Enterpriseviality. 2010;2:77–82.
  • Tashman P, Raelin J. Who and what really matters to the firm: moving stakeholder salience beyond managerial perceptions. Bus Ethics Q. 2013;23(4):591–616. doi:10.5840/beq201323441
  • Lange D, Lee PM, Dai Y. Organizational reputation: a review. J Manag. 2011;37(1):153–184.
  • Greene JD. Why are VMPFC patients more utilitarian? A dual-process theory of moral judgment explains. Trends Cogn Sci. 2007;11(8):322–323. doi:10.1016/j.tics.2007.06.004
  • Suter RS, Hertwig R. Time and moral judgment. Cognition. 2011;119(3):454–458. doi:10.1016/j.cognition.2011.01.018
  • Karpoff JM. Does reputation work to discipline corporate misconduct? In: Pollock TG, Barnett ML, editors. Oxford Handbook of Corporate Reputation. Oxford: Oxford University Press; 2012:361–382.
  • King BG, Soule SA. Social movements as extra-institutional entrepreneurs: the effect of protests on stock price returns. Admin Sci Quart. 2007;52(3):413–442. doi:10.2189/asqu.52.3.413
  • Reynolds SJ. Moral attentiveness: who pays attention to the moral aspects of life? J Appl Psychol. 2008;93(5):1027–1041. doi:10.1037/0021-9010.93.5.1027
  • Jordan J. A social cognition framework for examining moral awareness in managers and academics. J Bus Ethics. 2009;84(2):237–258. doi:10.1007/s10551-008-9706-3
  • Schmocker D, Tanner C, Katsarov J, Christen M. An advanced measure of moral sensitivity in business. Eur J Psychol Assess. 2019;36(5):864–873. doi:10.1027/1015-5759/a000564
  • Jones TM. Ethical decision making by individuals in organizations: an issue-contingent model. Acad Manag Rev. 1991;16(2):366–395. doi:10.2307/258867
  • Barnett ML. Why stakeholders ignore firm misconduct: a cognitive view. J Manage. 2014;40(3):676–702.
  • Blasi A. Moral functioning: moral understanding and personality. Moral Dev. 2004;1:335–347.
  • Trevino LK, Youngblood SA. Bad apples in bad barrels: a causal analysis of ethical decision-making behavior. J Appl Psychol. 1990;75(4):378–385. doi:10.1037/0021-9010.75.4.378
  • Reynolds SJ, Ceranic TL. The effects of moral judgment and moral identity on moral behavior: an empirical examination of the moral individual. J Appl Psychol. 2007;92(6):1610–1624. doi:10.1037/0021-9010.92.6.1610
  • Monga M. Managers’ moral reasoning: evidence from large Indian manufacturing organisations. J Bus Ethics. 2007;71(2):179–194. doi:10.1007/s10551-006-9133-2
  • Zakaria M, Haron H, Ismail I. Knowledge of ethics, perceived ethical problems and ethical judgments. J Financ Report Acco. 2010;8(1):50–64. doi:10.1108/19852511011055934
  • Martinov-Bennie N, Mladenovic R. Investigation of the impact of an ethical framework and an integrated ethics education on accounting students’ ethical sensitivity and judgment. J Bus Ethics. 2015;127(1):189–203. doi:10.1007/s10551-013-2007-5
  • Kouchaki M, Smith-Crowe K, Brief AP, Sousa C. Seeing green: mere exposure to money triggers a business decision frame and unethical outcomes. Organ Behav Hum. 2013;l21(1):53–61. doi:10.1016/j.obhdp.2012.12.002
  • Abdolmohammadi MJ, Ariail DL. A test of the selection-socialization theory in moral reasoning of CPAs in industry practice. Behav Res Account. 2009;21(2):1–12. doi:10.2308/bria.2009.21.2.1
  • Kazanjian RK, Drazin R. A stage-contingent model of design and growth for technology based new ventures. J Bus Venturing. 1990;5(3):137–150. doi:10.1016/0883-9026(90)90028-R
  • Klotz AC, Hmieleski KM, Bradley BH, Busenitz LW. New venture teams: a review of the literature and roadmap for future research. J Manag. 2014;40(1):226–255.
  • Zahra SA, Bogner WC. Technology strategy and software new ventures’ performance: exploring the moderating effect of the competitive environment. J Bus Venturing. 2000;15(2):135–173. doi:10.1016/S0883-9026(98)00009-3
  • Kumar S, Das S. Integrated framework of strategic orientation, value offerings and new venture performance. Decision. 2020;47(1):3–17. doi:10.1007/s40622-020-00232-y
  • Ramasamy B, Yeung M. Chinese consumers’ perception of corporate social responsibility (CSR). J Bus Ethics. 2009;88(1):119–132. doi:10.1007/s10551-008-9825-x
  • Arli DI, Lasmono HK. Consumers’ perception of corporate social responsibility in a developing country. Int J Consum Stud. 2010;34(1):46–51. doi:10.1111/j.1470-6431.2009.00824.x
  • Erikson R, Goldthorpe JH. Intergenerational inequality: a sociological perspective. J Econ Perspect. 2002;16(3):31–44. doi:10.1257/089533002760278695
  • Fang L, Yasuda A. The effectiveness of reputation as a disciplinary mechanism in sell-side research. Rev Financ Stud. 2009;22(9):3735–3777. doi:10.1093/rfs/hhn116
  • Silwal PP, Bajracharya S. Behavioral factors influencing stock investment decision of individuals. Int Res J Manag Sci. 2021;6(1):53–73. doi:10.3126/irjms.v6i1.42339
  • Patten DM. Exposure, legitimacy, and social disclosure. J Account Public Pol. 1991;10(4):297–308. doi:10.1016/0278-4254(91)90003-3
  • Core JE, Guay W, Larcker DF. The power of the pen and executive compensation. J Financ Econ. 2008;88(1):1–25. doi:10.1016/j.jfineco.2007.05.001
  • Christensen DM. Corporate accountability reporting and high-profile misconduct. Account Rev. 2016;91(2):377–399. doi:10.2308/accr-51200
  • Gurun UG, Butler AW. Don’t believe the hype: local media slant, local advertising, and firm value. J Financ. 2012;67(2):561–598. doi:10.1111/j.1540-6261.2012.01725.x
  • Culiberg B, Mihelič KK. Three ethical frames of reference: insights into M illennials’ ethical judgements and intentions in the workplace. Bus Ethics. 2016;25(1):94–111. doi:10.1111/beer.12106
  • Jhamb S, Stephenson T, Bibelhauser S. Ethical quandaries in business: a study of ethical judgment and ethical intentions through the Lens of Rest’s (1979) ethical reasoning process. J Leadersh Account Ethics. 2021;18(5):59–75.
  • Bowen HR. Social Responsibilities of the Businessman. Iowa City: University of Iowa Press; 2013.
  • Bonnefon JF, Landier A, Sastry PR, Thesmar D. The moral preferences of investors: experimental evidence. NBER Working Papers. 2022;w29647:1–43.